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Guest KingCharles1st

Cheshire B.s. 20 Year Fixed Rate 4.99%

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How can they do this? 20 years fixed rate ????? Agree with above..do they know something we don't know?

I would hazard a guess that the deal is not portable should you decide to move to a new property.

They are likely offering something that they know that very few people will be able to actually take advantage of, like lifetime guarantees on exhausts that you used to get before catalysts came about.

My old Golf had about 4 full new exhausts in its lifetime because of such a guarantee but I was unusual in keeping the thing for so long. They eventually stopped honouring it when the company was taken over, and I couldn't be bothered arguing about it for a £10 part that it needed.

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I would hazard a guess that the deal is not portable should you decide to move to a new property.

Portability

Product is portable subject to the new application meeting our lending policy :rolleyes:

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Portability "Product is portable subject to the new application meeting our lending policy" they say.

It's 100 quid to apply, total costs ~500 quid if succesful.

They'll also make profit here

"In the event of the mortgage being repaid, in full or in part, prior to 31.07.2020 an early repayment charge of 5% in years 1-3, 4% in years 4-6, 3% in years 7-9, 2% in years 10-12 and 1% in this remaining period, of the initial loan amount applies.

Annual windows in years 6, 8, 10, 12 and 14 when loan can be repaid, without an early repayment charge, click here (new window) for further details."

Basically if someone doesn't stay with them, except for 5 months out of 240 total, they get nailed for a few thousand on most homes.

Where are they getting the funds for this? Well, they're mutual, and the rates on savings don't go higher than 4.5% even for 250 grand or more rates so they're still lending it out for more than they're paying their members.

It's looking interesting for me - got a flat that I'm planning to pay off in about 6 years anyway, bought in 95 so <<50% LTV, don't live in it (rented) so don't have to worry about porting. You can also pay off up to 5 grand per year without penalty, a significant chunk on a sub-40k property. I just have to work out the number to see if that 500 quid up front is worth it.

Edited by MadJock

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Portability "Product is portable subject to the new application meeting our lending policy" they say.

That sounds like a bit of a catch.

What if, after a few years, their lending policy becomes to no longer transfer mortgages without, say a hefty fee. So unless you want to stay in the same house for 20 years they have you over a barrell!

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That sounds like a bit of a catch.

What if, after a few years, their lending policy becomes to no longer transfer mortgages without, say a hefty fee. So unless you want to stay in the same house for 20 years they have you over a barrell!

Not if you can pay it all off in the 'windows', or if 6 years of the 5k payments pretty much clears the mortgage.

If it's a few hundred k, and it's a sell outside the 'windows' because a) you have to move for a job, B) you lost your job and need to downsize, c) divorce, d) retirement etc, then yes it could be tricky for you. But, for me, it looks pretty good.

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http://www.thecheshire.co.uk/mortgageproduct/fbc.asp

I think it would allow people to budget, and forget about all the bubble crap- you can either afford it- or you can't...

I have this view that VIs know what they're talking about when they're trying to get you to do something such as take out a mortgage. Of course they know what they're doing talking up the HP market thus they'll sell you 4.99% knowing / believing rates will drop.

Don't touch it!

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I have this view that VIs know what they're talking about when they're trying to get you to do something such as take out a mortgage. Of course they know what they're doing talking up the HP market thus they'll sell you 4.99% knowing / believing rates will drop.

Don't touch it!

By your logic, anyone selling you something must be a "VI" and therefore you shouldn't buy from them. I can't see how anyone can know what interest rates will be in 10 years so they can't have any knowledge that is advantageous in the medium/long term.

I think the comfort of a fix for that period of time is worth a premium - although in this case there is currently no premium so if one can live with the restrictions, on face value it looks like it could be a good mortgage for many people.

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By your logic, anyone selling you something must be a "VI" and therefore you shouldn't buy from them. I can't see how anyone can know what interest rates will be in 10 years so they can't have any knowledge that is advantageous in the medium/long term.

I think the comfort of a fix for that period of time is worth a premium - although in this case there is currently no premium so if one can live with the restrictions, on face value it looks like it could be a good mortgage for many people.

Looks good to me, I have had my eye on this one for a while.

Don't knock a good deal when you see one.

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  • 301 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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