Best mortgage for me please help folks!

sarahmoo

Currently: owe 89000 approx
21 years left
want the option to overpay £200 per month

And

Want to know whether the cheaper rates with higher rates are worth it in my case?

And

Want to know whether I am best on shorter or longer term rate?

CHeers folks

sarahmoo

TYPO! should read cheaper rates with higher arrangement fees !

herbiesjp

To know whether a cheaper rate with higher fees is better for you, you would need to number crunch, see what your existing lender if offering you, and then compare with other deals on the market.

As for shorter or longer term fixed/tracker rates (with no extended ti-ins beyond the rate period) will depend on how you feel about rates increasing or decreasing.

If you are borderline on affordability you may want to fix your payments for 3 or 5 years, however if you want to take a gamble on rates and hopefully see them go down you could opt for a tracker/discounted rate.

The length of the rate depends on your own circumstances so difficult to give suggestions without knowing more.

sarahmoo

don't mind a bit of a gamble.... my mortgage is discounted at the mo... what do you reckon as to short/long term rates? Chees or even cheers

Robert_Sterling_3

I think that Nationwide does 2,3 and 5 year rates and allows overpayments of up to £500 per month.

Have a look at them and then see if anyone else suggests something better to you.

sarahmoo

cheers robert...am currently with them. Just checked out their rates..seem v. competitive but will be paying more than currently. It annoys me that I will have to pay an arrangement fee if i am already with them cos I'm tight lol....Any way round this? (Prob not!)

WiseInvestor_2

Typically, the lower the rate the higher the fees

If you can't afford large sums immediately (eg £600), perhaps a slightly higher rate might suit you that doesn't have any associated fees

Woby_Tide

a Nationwide remortgage will be £399 max if you are already a customer, at least you have a starting point with fees to then compare whether it is worthwhile switching

yascrack

Hi
I am looking at a similar thing to you and from "number crunching" this morning I have worked out I will be better off paying Brittania £399 arrangement fee - no other fees to pay on a 2 year 4.35% tracker.
Nationwides is 2 year at 4.54% with £499 fees
If you dont want any fees Alliance and Leicester is 4.84 2 yr tracker and Abbey is 4.94 2 yr tracker.
I am borrowing £92000 over 16 years and over the 1st 2 years it is better for me to pay
£400 fees as I will save about £300.
Also Brittania has a note on the website about £240 cashback (up to ) but didnt look into details - but as it works out best anyway it would be an added bonus.

If anyone know different to my figures above, I would be really grateful to know as I have been looking into changing my mortgage for ages and think this is the best deal I can find.
Thanks

sarahmoo

Thanks to all this valuable advice....will be taking heed and thinking it through...dont need to make a decision til Jan....