Renew Mortgage advice with Alliance and Leicester

living_legend

My mortgage is due to be renewed at the end of October, i had put a post recently about losing my job and was given advice that i'd need to stay with Alliance and Leicester as i'm not working.

I have contacted them last week and they gave me some options but all with a 2% product fee added to the mortgage which would be about £2000 added to the mortgage.

They offered 2 year fixed deal at 6.74% with 2% product fee.

2 year base rate tracker at 6.49% but again with a 2% product fee.

I dont fancy adding £2000 to my mortgage just for renewing it.

Just looked at my terms and they say after the end of October i will go onto their standard variable rate of 7%

I had been on 4.6% and the difference per month between 4.6% and 7% is £150 per month

I'm not sure what to do for the best.

The 2 year fixed deal at 6.74 with £2000 added to the mortgage works out at £673 per month.

Yet the standard variable rate i would go on to is £640 per month and means i dont have £2000 added to my mortgage and id be paying £33 per month less.

If i dont renew for now and go on their standard variable rate then in 6 months for example they have a good fixed rate and i want to go for it do i need to do a credit check?

I know just now i dont but just worried that if i dont renew before the end of October that will mean i will need to pass a credit check after October if i decide to take a deal with them.

I'm starting a part time job in 2 weeks but only £500/£600 per month.

Also my property has went up in value by £20-25 000 since i bought it 2 years ago.

Had some valuations 6 months ago that it was worth £25-30 000 more but i doubt id get the top end of £30 000 more in the current market.

Was just wondering if this may help me get a better rate as i owe £98 000 and i should be able to get £125 000 for the propertyif i decided to sell.

I know alliance and leicester offer better rates if your borrowing 75% or less than the property value, spoke to a girl about this on the phone about this earlier but she seemed confused and said i'll go and get someone to check this out then the phone went dead.

Owe 98k Property worth hopefully 125k, would that get me in at the 75% level? And would this require a credit check?

Any advice on this would be appreciated as i am lost and not working just now has made this all a nightmare, again any help advice would be great.

And sorry for so many questions, have considered selling it but being honest i dont want to and want to try my best to keep it.

Thank You