I am currently looking for a new 2 or 3 year fixed rate mortgage deal. My previous deal of 4.65% expires at 1st Dec. (This is with the Alliance and Leicester ). The best deal I can find is a 5.87% deal with the same lender but there is a £599 product fee , a £250 admin fee (How does this work I already have a mortgage with them ) and various transfer fees so it will cost around £800 to keep my mortgage with the same building society I’m already with.
Does anybody know of any good deals without huge admin and joining fees that I’ve missed as most disappointingly the Alliance and Leicester deal is the best I can find.
Thanks for your help
Yep, the lower the %% the higher the ‘application fees’ …
I used Charcol to find the best deals and spreadsheeted the results on a ‘per year’ cost basis .. (so, for example, a £300 fee spread over 3 years = an extra £100 per year)
I found that 3 or 5 year deals are ‘best’ … the fees of 2 years deals are spread over too short a time to make it worth while …
the better the interest rate the higher the fee i have found. you can add the fee to your mortgage, but most, if not all lenders charge fees, even if you are an existing customer. I would suggest looking at
http://www.moneysupermarket.com
which is a comparison site, or
http://www.moneysavingexpert.com
good luck.
References :
Yep, the lower the %% the higher the ‘application fees’ …
I used Charcol to find the best deals and spreadsheeted the results on a ‘per year’ cost basis .. (so, for example, a £300 fee spread over 3 years = an extra £100 per year)
I found that 3 or 5 year deals are ‘best’ … the fees of 2 years deals are spread over too short a time to make it worth while …
References :
http://www.charcol.co.uk/
Best initial rate is with Market Harborough BS. Initial Rate: 2.85% fixed for 2 years; but with a 5 year tie-in . arrangement fee of £595. Maximum LTV 75%. This mortgage makes sense if you think that UK interest rates will be lower in two years time. You are tied in to the mortgage for five years with hefty repayment penalties.
As always: This response is for discussion purposes, and cannot be relied on for advice. Contact a fee-free whole of market broker for a personal recommendation to suit your individual circumstances.
References :