Variable / Tracker Mortgages

  • Northern Rock 2.79% 2 year deal with £595 arrangement fee, 4% ERC until 1st March 2012, max 70% LTV
  • ING Direct 2.79% (BoEBR + 2.29%) 2 year deal (24 months exactly) with £795 arrangement fee (£195 booking fee), 2% ERC for 24 months, max 75% LTV
  • Co-Op Bank 2.99% 3 year deal with £199 application fee, 3% ERC until 31 January 2013, max 60% LTV
  • Woolwich 3.19% for term, no arrangement fee, 1% ERC until 31 January 2012, max 70% LTV

All of these deals look relatively good at the moment, but bear in mind that the base rate will eventually start to rise to combat inflation. Though this may be well into next year, it will still hurt your finances if you’re locked into a deal with an ERC until 2012 - you could well end up paying 6-7% on your mortgage if the base rate rises to 3.5-5%, which is its’ typical level over the course of this decade.

Fixed Rate Mortgages

  • First Direct 3.64% fixed for 2 years, £199 arrangement fee + £299 booking fee, ERC 3% yr1 - 2% yr2, max 60% LTV
  • Chorley & District BS 4.99% for 2 years, 0.75% arrangement fee, ERC 3% for three years, max 90% LTV
  • Mansfield BS 4.39% fixed for 3 years, £999 arrangement fee, ERC 3% for three years, max 75% LTV
  • Newcastle BS 4.99% fixed until 31.12.2014, £994 arrangement fee, ERC 3% until 31.12.2014, max 75% LTV
  • Chelsea BS 5.69% fixed until 31.12.2019, £995 arrangement fee, ERC from 8% yr 1 to 4% final year

Of these fixed rate deals the First Direct deal looks ok, but none of them are particularly good when you consider the base rate is at 0.5%. We really should be seeing some fixed rate deals below 3% considering the billions of taxpayers money that has been poured into the banks to ease liquidity, but as per usual the UK govt has been stiched up by the bankers who and it’s joe public that feels it.