calling all mortgage experts!!

6 replies
Found 29th Sep 2008
ok my tracker mortgage has just finished and brittania have just offered me a 3 year fixed rate, with a £499 set up fee a rate of 5.34, and im reluctant to take out a fixed rate, as i think the boe will drop the rates steadily over the next 3 years so feel i could lose out ,its not a bad rate they have offered me is there any better at the moment cheers

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how much is the mortgage for? this will give an idea to whether the set up fee is expensive


this is the website of the magazine. it lists the best mortgages and access is free.

What you should take into consideration is ......... What has the average mortgage rate been over the last say 5 or 10 years and the likelyhood of you paying much less?

You will find that the average is probably over 5% and that being the case, fixing at the rate offered will give you peace of mind and an ability to budget your outgoings in this time of uncertainty. The rate struck for fixed rates is known as the 'swap rate' and is an international rate where money is lent to financial institutions. Unfortunately there is little confidence in the market at present and 'swap rates' are generally rising. Therefore if you like the idea of 'budgeting', it is likely that fixed rates may rise in the near future until confidence is restored.

Unfortunately, nearly all lenders are asking an arrangement fee at the moment as they want to produce more profit with a bigger margin - possibly understandable in the present financial climate.

Hope this helps with your decision.

Is that 5.34 the APR figure?
What percentage of the value of the property are you trying to finance?
Do you have any savings?

we are remortgaging at the moment:

HSBC are offering .9% above the bank of england rate. with no set up/exit fees and no ties ins. max to borrow is 90%. with unlimited overpayments facility.

would this be any good to you?
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