Major help and sound advice needed!!!!

kaykay_2 · 21 March 2007 at 8:40PM

We are looking to remortgage our property as we are no longer tied in. We are looking at borrowing 128,800 over 20 years - we have no major concerns about fluctuating interest rates, so we thought discounted or tracker mortgage. I talked to L&C and they said they thought fixed term for 2/3 years no tie in would be best for us and then got back to me to say stay with my current lender A&L and go for fixed with them!!!! The best A&L can do seemed to be discounted for two years the fixed rate as an existing customer also seems to be ok - but i just dont know what to do!!! as im rubbish at decision making. Any advice would be greatly apprecieated - thanks

homer_j_3 · 21 March 2007 at 11:26PM

What a good job by L&C lol....

I think that you need to work out what you want before you go any further because you will not get the best from any adviser if you cannot tell them what you are looking for.

That said, I do not expect you to say that you want X, Y or Z off the top of your head. I believe that a good adviser will sit down with you or talk through with you the different kinds of mortgages that are available and also how they differ with advantages and disadvantages of each.

I personally would be asking you questions about what your thoughts are on interest rates, what plans you have for the next 2,3,5 years etc and then try and make some suggestions to what you might want to consider in deciding the type of mortgage you want. I would also be trying to guage your preferences in terms of lower payments, fees, tie ins etc..

I believe that you should be able to at this point decide whether you want a tracker or a fixed and also whether you want it for 2,3,5 or more years. Once you understand that, then your adviser will be able to find the most suitable product for you.

If you have not discussed these things with your adviser or had an explanation to how the adviser has arrived at the deal that they have then I would be looking elsewhere for a better adviser.

Hope that helps..

kaykay_2 · 22 March 2007 at 12:19AM

Thanks for the advice. All i know as it stands at the moment is i want to switch to repayment as half the 128,00 is endownment and i would like to substantially reduce our payments over the next few years, the way i see it rightly or wrongly, any type of mortgage comes with a risk fixed or not and as our current payment stands at 950.00 per month i was hoping to reduce it by £100.00 per month. Are A&L very competetive??? I was shocked to find that L&C were tellilng me to go back to my current lender, the only reasoning he could give was that they would charge me £295.00 for a deed release, so with that in mind it wouldnt be worth changing!!!
Any replies welcome

homer_j_3 · 22 March 2007 at 12:28AM

What interest rate are you currently on?

kaykay_2 · 22 March 2007 at 9:42AM

Hi
Its standard variable rate 7.39% currently. Based on 20 years on the amount we want to borrow they are quoting a discounted for 2 years no tie in except for the discounted 2 years and a monthly payment of £876.22, and a fee of £250.00 obviously no deed release fee.

JoeK_3 · 22 March 2007 at 9:51AM

kaykay wrote: »

Hi
Its standard variable rate 7.39% currently. Based on 20 years on the amount we want to borrow they are quoting a discounted for 2 years no tie in except for the discounted 2 years and a monthly payment of £876.22, and a fee of £250.00 obviously no deed release fee.

What discount are they offering?

JoeK

kaykay_2 · 22 March 2007 at 10:41AM

Its 2.05% discount for 2 years off the standard variable rate of £7.39%.

Major help and sound advice needed!!!!

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