gavin18787
Premium Member
Registered: 22nd Feb 05
Location: Basildon, Essex
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Currently in the process of buying my first house. Got my offer accepted and aproved for the mortgage. Just trying to decide what mortgage to go for out of my two best offers
Fix one for 2 years for an average rate (3.8%)
or go for a tracker that follows the base rate (2.8% plus the current base of 0.5%)
Tracker works out better but has a higher setup fee and could be at risk of spiraling
But then the fixed one jumps to 5% after two years and then I will have to pay aprox another £1000 in mortgage fees........
Just wondering what others have done in the past
As for solicitors any advise. They all seems to be out to rob ya so might just use the estate agents ones 
Ta for any input 
[Edited on 09-05-2012 by gavin18787]
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Ben G
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Registered: 12th Jan 07
Location: Essex
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first off, where are you getting a fixed rate for 3.8%? guessing you have a big deposit (25% or so) to put down?
i would go with the fixed tbh. it's only 0.5% more and after 2 years find another deal.
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gavin18787
Premium Member
Registered: 22nd Feb 05
Location: Basildon, Essex
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Aye I had a nice big deposit to get the good rates
Only thing putting me off is stumping up another grand in 2 years to fix it again when it may be no better then the tracker.
With that state of the econamy everyone I have spoken to cant see the base rate going up. Even if it does slightly it will just match the fixed.....
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Cavey
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Registered: 11th Nov 02
Location: Derby
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A few banks put their base rates up half a percent recently,even though boe baserate hasn't changed. If a few have done it, I can see the rest doing it soon as well.
Obviously, if over 2 years you save over 1k then its worth going with the fixed rate.
We got fixed for 3 years at 5.59 which expires next year, and will be staying on variable once that finishes for a while anyway. Cunt of a mortgage advisor got us on to the fixed in the first place because we HAD to use him
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Ben G
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Registered: 12th Jan 07
Location: Essex
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think yourself lucky cavey. we're on 6.05% for another 12 months  bit gutted tbh but it's only a £100 or so more PCM than renting around here anyway.
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AlunJ
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Registered: 3rd Apr 07
Location: Newport
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quote:
Originally posted by Cavey
Cunt of a mortgage advisor got us on to the fixed in the first place because we HAD to use him
Bovis told me I had to use theirs, I told them to get fucked and went with my own 
Gone over to variable rate now and I'm about £50 better off at the moment, still I'm paying £379 on my mortgage a month at the moment and next door is being rented out at £450pcm
[Edited on 08-05-2012 by AlunJ]
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Colin
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Registered: 4th Apr 02
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Fixed!
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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I paid a fee to fix at 5.39
Then 2 years later I got a tracker for free and I'm now paying 1.09
So you can guess which one I prefer.
The rates must go up at some point, the question is when. I you think its soon, fix. If you think its not soon, track.
Try to avoid fees and also try to avoid fixing later. That one that goes incredibly shit in two year's time is designed for silly people who can't see past getting a shiny new house.
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gavin18787
Premium Member
Registered: 22nd Feb 05
Location: Basildon, Essex
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I think I will be tempted to go tracker unless I can find a fixed that doesnt have such an increase after the term ends. Going to go back and see the two advisors today and see what they both come up with
Main thing putting me off the tracker is its with the bank of china and they want the fees up front. So if my house falls through I am then stuck with a mortgage???
Something I need to discuss further with them today.
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AndyKent
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Registered: 3rd Sep 05
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I prefer tracker for now simply because rates aren't going anywhere and fixed 'deals' are all more expensive. BoE reckons rates probably aren't going up until 2013.
Benefit with a tracker longer term is that if rates do rise you get a slower step up to a new payment, rather than coming off a fixed deal to a higher rate and finding you need another £200/month just to pay the bills!
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AndyKent
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Registered: 3rd Sep 05
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Also, fees up front sounds dodgy. Usually fees paid on opening of mortgage and either added to the mortgage or taken from you there and then as an initial payment.
That said, if you confirm with them you'll take the mortgage you should be at the point of completion in which case the purchase can't fall through.
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Fro
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Registered: 20th Jun 06
Location: Rainham, Essex Drives: A3 2.0TDi Sport
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Mum works at BofE I'll ask her tonight if she has heard anything about the rates.
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
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Its always a tricky one.
I think the way its been going over the last few years we are not going to be seeing any major increases any time soon. At most they might do a 1/4% or 1/2% over a few months and then see how it goes over the next few months.
The big scam they are all pulling is now the rate that fixes mortgages drop down to. After being shafted with some people on 0% and many <3% they now screw you over and revert you to a new baserate of 5%+.
All things said and done its a bit of a gamble as there is soo much guesswork.
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John
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Registered: 30th Jun 03
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My tracker after the fix isn't the best, it hardly drops at all.
What's the score with going for a new mortgage? Do they do a valuation on the computer to give you an idea of your LTV (I know it won't have changed much, if at all)?
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whitter45
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Registered: 15th Nov 02
Location: Norton
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at 3.8 go for fixed even though i don't think they will move much
You must have a hefty depsoit
I have ported my mortgage from house just sold at base rate plus 2% which mean 2.5% and then borrowed additional on a fixed for 2 years at 3.8%
Reason for porting was I have no early redemption fees and can over pay with no limit
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whitter45
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Registered: 15th Nov 02
Location: Norton
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also with mortgage fees after 2 years look at rates with no mortgage fee associated with it
You never know what's going to happen but at least for 2 years you know what your outgoings will be etc
and they are not going to drop - probably stay as they are or go slightly higher
also check with banks as some offer cash back incentive when you complete which will pay for the mortgage or valuation fees
[Edited on 09-05-2012 by whitter45]
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whitter45
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Registered: 15th Nov 02
Location: Norton
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quote:
Originally posted by gavin18787
I think I will be tempted to go tracker unless I can find a fixed that doesnt have such an increase after the term ends. Going to go back and see the two advisors today and see what they both come up with
Main thing putting me off the tracker is its with the bank of china and they want the fees up front. So if my house falls through I am then stuck with a mortgage???
Something I need to discuss further with them today.
what fees upfront -
Valuation fee is non refundable so if you pull out you lose it. Mortgage fees can be paid up front rather than added to the loan - the fees are used to secure the mortgage so normal practice
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Toby
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Registered: 29th Nov 05
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Interest rates are favourable and would seem like this will remain.
When i first got my mortgage, i wasnt earning a great deal and would rather have the security of being fixed for 2/3 years knowing that i could afford it each month.
Now i could afford the increase if worse case came around i would go for a tracker.
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gavin18787
Premium Member
Registered: 22nd Feb 05
Location: Basildon, Essex
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Bailed out on my initial deal as some of the details seemed a bit sketchy as it wasnt a very big company and I wasnt happy putting down all that money up front.
Gone for Abby /santander @ 3.09% above base fixed for 2 years
So 3.59% over my 3.3% other offer but only a small fee and free survay
£600 less in fees divided by 24months works out about the same and its with a nice main stream lender.
So one step sorted and now onto solicitors.
Best quote I have had in person is £1089 but then I have found one for £724 online. Online ones worth a shout of best to use a local bloke in a suit?
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
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Local one can be handy for getting stuff turned around quickly - that said it does not matter how quickly you turn it round, if the other solicitor wants to drag their feet they will.
I used an online one and it was fine. Had very good emails coms and also a status page which had a checklist of each step that had been completed which was great for seeing how things were moving on.
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SXI - Matt
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Registered: 8th Jul 07
Location: Leicestershire Drives: Corsa C SRI
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I've opted for the local solicitor for my self, David Wilson site were my house is recommended them, bit of research and they are good, average price but means things are moving more quickly (well as quick as these things can) and as they use them all the time communication is great and don't need chasing. Depends if you want to save money I suppose
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whitter45
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Registered: 15th Nov 02
Location: Norton
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local is much better
fees add up as they charge over a £100 to fill a from for land registry, etc
Don't forget stamp duty also
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gavin18787
Premium Member
Registered: 22nd Feb 05
Location: Basildon, Essex
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Went online in the end. Was £500 cheaper and I have read all of the small print and its all inclusive of all the disbursments and phone calls etc.
Got a direct line to my personal case worker and solicitor and an email address so looks all good. Spent the last hour looking for bad reviews and only found good ones too. So fingers crossed
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SXI - Matt
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Registered: 8th Jul 07
Location: Leicestershire Drives: Corsa C SRI
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Ah fair play sound's good, I suppose in fairness they all do the same job, I just went with the local one's as seemed easier but if your saving £500 then 
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James
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Registered: 1st Jun 02
Location: Surrey
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In general I would recommend local as you can just turn up and give them shit if things aren't progressing. But I guess the £500 extra you pay is a premium for that luxury.
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