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    Re-mortgage options

    Hello. Just wondered if anyone could give me any advice/opinions. I am currently going through the process of changing my mortgage deal with Yorkshire Building Society and am undecided about going for a 2, 3 or 5 year fixed rate deal. Now I know that there are better mortgage lenders out there at the moment but as I don't have the time (or effort) to change lender, I have decided to stay with Yorkshire. The 2 year rate is 1.79% (£343), the 3 year rate is 2.19% (£359) and the 5 year rate is 2.54% (£373).

    Crystal ball time....My question is...should I go with the 5 year rate as interest rates are likely to go up? Or do people think that they will go down, stay quite stable?

    Thank you in advance for any help/advice given

    Andy

    20 Comments

    my crystal ball says 5 year - great rate for a 5 year rate - and arrangement fee there is reasonable. Do also look at First Direct - make things so easy.

    whatever deal you chose I would bet that you will regret not having the 'time or effort' to shop around. Its not that time consuming and there are better deals out there you just have to look.

    Make sure you get one which allows you reduce your capital whenever you can with NO penalty.

    I have just changed mine last week, I was advised by numerous advisors to tie in for as long as possible so I have tied in for 10 years with barclays

    deborahbarry6

    I have just changed mine last week, I was advised by numerous advisors to … I have just changed mine last week, I was advised by numerous advisors to tie in for as long as possible so I have tied in for 10 years with barclays



    With all the doom and gloom of brexit won't rates drop (_;)

    deborahbarry6

    I have just changed mine last week, I was advised by numerous advisors to … I have just changed mine last week, I was advised by numerous advisors to tie in for as long as possible so I have tied in for 10 years with barclays



    Did you ask them how much interest you end up paying by being tied up for so long? These advisers advise you on behalf of his bank, not on behalf of you!

    How much is the arrangement fee?

    woody_____

    With all the doom and gloom of brexit won't rates drop (_;)



    Nope. Interest rates will almost certainly need to go up to help prop up the £

    Very personal question but would mind sharing how much you have left please?
    They are some good alternatives for small amounts...

    Original Poster

    There was no arrangement fee.

    My mortgage amount is 82,557 and they have valued my house (without coming out) as 121,774. Its the waiting for the valuation that puts me off moving, and the fact that I don't want to have to pay an arrangement fee!

    deborahbarry6

    I have just changed mine last week, I was advised by numerous advisors to … I have just changed mine last week, I was advised by numerous advisors to tie in for as long as possible so I have tied in for 10 years with barclays



    ​Just agreed new a ten year deal with my lender today too as the difference between a five year was quite small and what with the uncertainty over how Brexit will pan out I felt i needed the stability of knowing exactly what I'll be paying for that period

    mas99

    Nope. Interest rates will almost certainly need to go up to help prop up … Nope. Interest rates will almost certainly need to go up to help prop up the £



    Was going fishing the remainers but got a serious reply

    aandyr123

    There was no arrangement fee. My mortgage amount is 82,557 and they have … There was no arrangement fee. My mortgage amount is 82,557 and they have valued my house (without coming out) as 121,774. Its the waiting for the valuation that puts me off moving, and the fact that I don't want to have to pay an arrangement fee!



    ​what ever u to check what fees there are if u pay on top usually there won't be unless u out down more than 10 percent in a year in ur lock down period. try and pay some amount off each year as the longer your mortgage is the more in treat is paid in the first years say after 5 years of a 25 year mortgage u will probably still have around 75/80 thousand left on it without much being payed off

    Original Poster

    Thank you to everyone for your replies. Like I said, the idea of getting my house valuated (plus the fact that I think they have actually given me a decent valuation for my house) makes me want to stay with Yorkshire. From looking on comparison sites, I haven't seen any rates that smash the one that i have been offered out of the water (ithout having to pay a product fee/arrangement fee).

    I think though, from what has been posted...I will go for the 5 year deal.

    Thanks everyone

    money.co.uk/mor…htm
    Use this site, HSBC comes in way cheaper and the process is simple. You can do the agreement in principle over the phone, takes about 90 minutes. You'll save heaps

    Martin Lewis did a programme about mortgages the other night. Try ITV player or catch up to check out his advice....

    Ha, I have the same dilemma. Currently with Natwest and I know I can save a tenner a month by moving but.......to move needs another survey and that could mean having to fix a few things that I am not planning to do until the summer. Valuation isn't an issue as my LTV is about 15% and I only have 7 years to go on my mortgage so a fixed 5 year would be the way to go you would think but......within the next 5 years I may wish to downsize and if I wanted to be mortgage free then I don't see why I should pay a redemption fee. I know I can move this to another property but perhaps I don't want to. Or what if either I or my partner should die and the mortgage protection policy kicks in and the mortgage is paid off but a redemption fee is still owing. Morbid thoughts I know but the banks have made a fortune out of us over the years and have cost us dear in other respects. I don't see why they should make even more money should the unfortunate happen.

    At present mortgage rates are at an all time low. It is not really possible for them to go much lower than they are and although there will be speculation that rates must go up to support the pound there is also the argument that rates have to stay low to encourage spending and productivity.

    The main things to consider are this as whatever is going to happen in the future is unforeseeable. The following however are the facts upon which I have made my decision.

    1. How much were you paying per month on your last fixed deal
    2. How much are you paying or will be paying based on the current standard variable rate
    3. How much will you be paying on a new 5 year fixed rate
    4. How much will you be paying on a new 2 year fixed rate

    The answer to question 4 will be the lowest cost per month but if you are happy to pay a little more for the 5 year fixed deal then that is the one to go for in your case. In my case my circumstances are a little different but my gut instinct is telling me fix for 5 years and if I move then I will just move the mortgage and overpay by the allowed 10% per year if that works out cheaper than paying a redemption fee.

    For me the answers were this.

    1. £458.00 Old fixed rate
    2. £442.00 Standard variable rate
    3. £414.00 Fixed 2 year deal
    4 £424.00 Fixed 5 year deal

    Quite ironic to see that now my rate has finished the standard variable rate is a lower cost than my previous fixed deal.

    To do a 5 year fixed will save me £34.00 a month compared to what I was paying for the last 2 years so looks like a no brainer.

    I just fixed mine online and it's cost me an extra £1.00 a month compared to last week. Looks like a slight increase is happening already with Natwest and the 2 year fixed deal was nearly another £2.00 a month compared to last week. Not sure if there is something wrong with their website as I checked the 5 year fixed with product fee of £995 and it was £2.00 a month more than 5 year fixed with zero product fee !!

    woody_____

    Was going fishing the remainers but got a serious reply



    If thats what you want...

    The fall in the value of the pound which has happened so far, and which will happen over hte next 2 years will mean that there will be a knock on impact on uk businesses and banks which will see the value of £ denominated assets fall like a stone. Expect to see S&P etc reduce the ratings of uk plc; interest rates and bond yields go bang, etc
    Be interesting to see how debt cover /stress tests go.

    Well mine ended up being a bit of a joke. I signed the form online, got the documents emailed the next day and it said it was another £4.00 a month more than quoted online. I rang up and complained. I know it's only a small amount but whatever my mortgage account shows online is what I should pay. The guy at Natwest said when he tried it showed the higher amount. Borelocks. He tried to tell me it was only an indication online so I said I'm sorry but if it was only an indication then why is it to the penny and not to the nearest pound. I said you must have some of the best software designers working on your website and taking what I owe today and adding today's interest rate for 5 years surely gives an amount fixed for 5 years and then a balance at whatever. He said that's correct. I said but it's wrong. So just checked it today after my mortgage gone out and it's now £423.00 per month.

    I have booked it so I will see what the email figures are tomorrow. If it's less than £429.00 then I know what they told me last week was a load of spheres. However, if it's still £429.00 then this means the website is deliberately set to give you a lower rate per month which is wrong and is mis-selling in my opinion. I couldn't seem to get it into this guys head that if natwest are telling me I will be paying a certain amount online and a different amount in reality then this is wrong. Corporate companies website should not be wrong. I even had my local ISP tell me their website was wrong when I queried the amount online was less than I was paying. Only £1 a month but seeing as we can't go to any other ISP's where I live there is no benefit of discount for online customers.
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