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Djini

With Fees And Lower %, Or Higher % And Fee-Free?

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Guys, on a £70,000 mortgage, 12 years paid I'm in a position to take another fixed rate. I'm on about a 30% LTV :D

I'm looking to take a 5 yr fixed. I can have

£0 @4.49%

£499 @4.19%

£899 for a 3.99%

For my mortgage size, what's the best option (and how do I work it out)? The fee will be added onto the sum mortgaged

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Guys, on a £70,000 mortgage, 12 years paid I'm in a position to take another fixed rate. I'm on about a 30% LTV :D

I'm looking to take a 5 yr fixed. I can have

£0 @4.49%

£499 @4.19%

£899 for a 3.99%

For my mortgage size, what's the best option (and how do I work it out)? The fee will be added onto the sum mortgaged

£899 for 3.99% is your cheapest bet.

Tts 0.2% cheaper than the middle option per year = 0.2/100 X 70,000 = £140 per year cheaper. Over 5 years its £700 cheaper in interest charges.

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Thanks Flynn...

Now, I can also get a tracker (+1.49% above base) for 2 years, but that'll cost £999

Worth going for instead? Are we likely to see the base rate above 2% in the next two years?

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£0 @ 4.49% on £70k = £262pm interest

£499 @ 4.19% on £70499 = £246pm = £16pm cheaper so over 5yrs = £960 saving - £499 fee = £461 better off over 5yrs

£899 @ 3.99% on £70899 = £236pm = £26pm cheaper so over 5yrs = £1560 saving - £899 fee = £661 better off over 5yrs :D

Tracker:

£70999 @ 1.99% = £118pm interest so over 2yrs - IF the rate stays the same which it will prob go up - £118pm cheaper than the 5yr fixed saving £2832 - £999 = £1833 saving over 2yrs compared to the fixed BUT you have the risk of the rate going up and you have to get a new deal after 2yrs with potentially more fees and you don't know what mortgage fees and rates will be like in 2yrs so more of a gamble.

Hope this helps

Lucy :P

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£0 @ 4.49% on £70k = £262pm interest

£499 @ 4.19% on £70499 = £246pm = £16pm cheaper so over 5yrs = £960 saving - £499 fee = £461 better off over 5yrs

£899 @ 3.99% on £70899 = £236pm = £26pm cheaper so over 5yrs = £1560 saving - £899 fee = £661 better off over 5yrs :D

Tracker:

£70999 @ 1.99% = £118pm interest so over 2yrs - IF the rate stays the same which it will prob go up - £118pm cheaper than the 5yr fixed saving £2832 - £999 = £1833 saving over 2yrs compared to the fixed BUT you have the risk of the rate going up and you have to get a new deal after 2yrs with potentially more fees and you don't know what mortgage fees and rates will be like in 2yrs so more of a gamble.

Hope this helps

Lucy :P

It does help hugely thanks Lucy. I've always enjoyed the security of a fixed rate, even if it does mean I pay more for it. I'll not be making a huge saving over 5 years (or loss) but I think it's woth getting this rate now and paying off the old one(s) early.

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Latest one, Yorkshire BS now offering (on my LTV)

3.99% £95 fee

3.89% £995 fee

Rates are falling. Ever so slightly, but falling. They must think IR is not going up for the foreseeable.

This is portable, and can overpay by upto 10% PA in 1 payment of monthly etc. Although phoning them and asking, there are all kinds of extra 'fees' they bolt onto this, I didn't take much notice TBH, but it was adding up to over £600.. Suspect all mortgage lenders are like this.

Bit of a con IMO, especially when my mortgage is so small. It's almost 1% on top.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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