morgage advice

marge20

Hi Folks
our fixed rate with the yorkshire building society is comming to an end and as martin explained I have checked what deal they would offer me then visited a whole of the market financial adviser who adviced us to have a one account and made it sound extremely good we have our house up for sale and are trying to move up the ladder we currently have a small morgage and will probably have a deposit of 50% if we do move, we have been advised to move to the one account and borrow the maxiumum we can but only use the small amount of the morgage that we have so that when we move the equity will already be set up I feel extremely confused any thoughts please help, had bad advice in the past and dont wont to go there again

cheers
Marge X

beecher

That sounds overly complicated to me, and I'd always be wary of anyone who advises someone to borrow as much as the possibly can. What happens if your house doesn't get you the money you are hoping? Or if you can't port this new mortgage because your new home is a new build and your LTV is too high?

What deal did the Yorkshire offer you? Is there any way you can be placed on a tracker/variable rate with no exit fees until you've sold? edit: check to see what rate you go onto when your fixed rate comes to an end as you could be lucky and find you go onto a tracker. If it is a small mortgage then it'd surely make more sense to only pay a higher mortgage once you actually move?

Or maybe I'm missing something - hopefully someone else will be along soon to give professional advice.

marge20

ybs 6.79% fixed for two years or the variable rate would only inccure an exit fee of about £120 do you think these one accounts are any good because he explained that there are no exit fees and if we took on a fixed we could be paying over the odds although i found a good deal with the britannia 6.64 with a fee of £499 for 3 years for members only, the only thing that bothers me is that the uncertainty of moving and the problems that alot of people out there are having trying to obtain a morgage and even though we are in a good position there are not many good offers out there

Thanks for that you made good sense
Marge x

Toughluck

Dependant on your income and credit history there are much better products out there. abbey are reducing their intermediary rates further tomorrow morning.