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Original poster

reasonable mortgage rate - fixed for two years and what's teh thinking on whether rates are going up or down???

31 replies

jeangenie · 07/12/2007 11:24

we've been offered 5.49% but with whopping £1,499 arrangement fee (which broker says we'd recoup in savings against current variable rate over those two years and savea nother £1k too)

am thinking of going for it

haven't been apying attention to rates lately - are they going up or down? what are the predictions for future?

we don't have to remortgage til current fix ends (4.49% BOO HOO ending next feb)

thanks for any thoughts - am in a right old muddle

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katyjo · 07/12/2007 11:34

they just announced an interest rate cut yesterday, have another look today or after the weekened if your not in hurray you might find you get a better deal. It's the first rate cut in 3 years.

camillathechicken · 07/12/2007 11:36

that is a huge arrangement fee ! if it takes you two years to recoup, what is the point?

i have changed mortgages several times, and never had to pay an arrangement fee.

i got a fixed rate of 4.99 % fixed for two years, without any fees through an IFA

Original poster
jeangenie · 07/12/2007 11:37

oh thank you! - I had a feeling rates were due to go down that the boe had said reduce for two months, broker is pressurising us to put in the app now but I will check again Monday I guess. The mortgage is with first direct and he says they may be pulling it end of next week, but i guess they may be replacing with a better deal. God it is such a nightmare isn't it?

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camillathechicken · 07/12/2007 11:39

is this guy independent? i have not had a mortgage with one of the big banks for a long time.. they seem to charge massive fees and the interest rates are not always competitive

Original poster
jeangenie · 07/12/2007 11:39

i know camilla - it's humungeous - which is why I am resistant and looking around still.

when did you remortgage? I can't see anything near 4.99% around at present...

I'd ahppily do it myself if I could save that fee, broker is reputable nationwide one...

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camillathechicken · 07/12/2007 11:39

it was about 9 months ago, so obviously things have changed

Original poster
jeangenie · 07/12/2007 11:41

yes, they are independant. London and Country. Free to us although get fees from the bank. When I asked why that didn't mean they wouldn't just suggest a solution that gae them most fees he said it was because they are tightly regulated by FSA and most of teh banks offer around the same commission anyway.
We used them last time (2yrs ago) and they did get us good deal with low fees

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Original poster
jeangenie · 07/12/2007 11:42

who are you with Camilla? (if you don't mind me asking) might be worth me checking them out (clutches at straws!)

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camillathechicken · 07/12/2007 11:43

if you are not happy with the offer, then shop around.. don;t feel pressured, it is a big decision

camillathechicken · 07/12/2007 11:44

it is the Accord, our IFA found if for us.

Original poster
jeangenie · 07/12/2007 11:45

did you have to pay IFA? not sure how that all works, never used an IFA although sure could do with advice as finances tend to get very muddled!

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camillathechicken · 07/12/2007 11:52

we did not have to pay. he gets his fee from the mortgage provider and he shows us upfront what fee he will get from each suggested mortgage. he visits at home at a convenient time and is very helpful ! becasue he is not tied to a particualr institution and is totally transparent re his fees, i trust him implicitly.

Original poster
jeangenie · 07/12/2007 11:54

he sounds fab! where is he? dont suppose anywhere near SE london?

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camillathechicken · 07/12/2007 11:58

'fraid not, we are oop norf ! however, if you google IFAs, you are bound to find one. i know one advertises on here, but cannot remember where he is based ... might be worth looking in the small business ad section

this site should help too

Original poster
jeangenie · 07/12/2007 12:09

thanks!

anyone else know of any great deals? got a crystal ball that can tell me what to do?

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Niecie · 07/12/2007 12:18

Don't let the broker pressurise you - he just wants his fat fee for Christmas. There isn't a huge hurry.

Have you tried www.moneysupermarket.com? They have a range of mortgages. DH arranges our mortgage so I don't know the details but we have never had to pay such a huge fee!

I would say 5.49% was pretty good. I would wait a week for the reductions from the BofE to take effect though. Lenders are never as keen to lower rates as they are to raise them when the BofE makes a change.

noddyholder · 07/12/2007 12:28

I would take that as the banks are unlikely to pass on the reduction as on bbc news this morning an economist said the cut was for teh benefit of the banks but will have no effect on the housing and mortgage market.

noddyholder · 07/12/2007 12:29

Be careful of the arrangemtn fees as they are creeping up on fixed rates and when you work it out over the 2 yrs or whatever you fix for you haven't saved anything

ILiveinhope · 07/12/2007 12:31

We have just got 5.63% fixed for 5 years with the Nationwide with a 499 arrangement fee, tbh your deal does not look good to me and I would shop arounf some more.

Fizzylemonade · 07/12/2007 13:13

We have used London and Country before, they were brilliant and they do a last minute check of the market just before you sign to make sure you are getting the best deal.

They even asked us questions like - are you more concerned with beating the standard variable rate OR are you more interested in knowing that you are paying the same amount every month.

When we came to renew our fixed rate it was in our best interest to stay with our current provider and take their latest deal which meant London & Country had searched the market and it costs us nothing as we had to renew direct with our mortgage provider.

foxythesnowman · 07/12/2007 13:22

We used L&C and they were good, but I found a cheaper deal in the press myself. Saturdays Guardian Money section has different types of deal listed, and look out for the ad's in the main bit of the paper too (that's where I spied mine).

Always call your current lender and see if they can match it before you switch. You will probably save on arrangement fees too.

And make sure you don't get stitched up with the arrangement fees. I've got a feeling that on moneysavingexpert.com there's something about excessive fees and claiming them back.

Hope this helps.

foxythesnowman · 07/12/2007 13:25

Apologies, its not arrangement fees, its exit fees here

Original poster
jeangenie · 07/12/2007 14:27

hmm, checked out moneysavingsupermarket (thanks for that suggestion) and can get same rate but for fee of £5k with Chelsea BS

phoned current mortgage people (C+G) and they can't offer anything as competitive but said they will call if their fixed rate goes down after recent drop by BoE

will look at guardian over the weekend but otherwise probably go with the First Direct one with £1499 fee (makes me feel sick that you have to pay someone so much money to then pay them 100s of 1000s of quid over the next 23 years in interest!). London and Country promise to do last minute check on rate and fees basis before we committ to anything so it is probably sensible...

our mortgage is quite big so any difference in interest rates is worth a lot to us on a monthly basis

5.49% does seem to be about the best out there at the moment

what a horrible business!

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foxythesnowman · 07/12/2007 14:35

any of these any good?

Original poster
jeangenie · 07/12/2007 14:53

god yes - that co-op bank one loos just the ticket

am off on school run now ut will lookk properly later - thanks you foxy snowman!

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