Should I change mortgage proviser?

koreilly

My discounted scheme on my Abbey mortgage has come to and end. I called Abbey to see if they had any similar offers but to save £11 a month they wanted a £499 set up fee and a tracker mortgage at 1.5% above the Bank of England rate wanted a set up fee of £1,399. I have 7 years left on the mortage and approximately £79,000 outstanding. Is it worth changing to a different lender? Other people have told me it's not worth it for a mortgage that has such a short (?) time to run. Any advice?

beecher

I think you need to give more details here. Is the £11/month a saving compared to what you're paying now, or what you'd be paying on SVR with Abbey once your deal comes to an end? Would it be for a fixed or tracker, and for how long? Do they do a term tracker you could go on?

koreilly

The £11 a month is the difference between the new rate I'm paying at Standard Variable rate and the 6.59% rate offered on the discounted rate and lasts for 3 years. The tracker is for as long as you want it and at 1.5 below the BOE rate, so would save slightly more per month but it would take a long time to recoup the set up fee. Also, I think Abbey would charge me a fee if I wanted to leave them and move to another provider.

UK007BullDog

Well go to a broker and find out what is out there. The fee Abbey will charge you is the exit fee. Your old docs should tell you how much it is.

Even paying the exit fee and the fees from the new lender you might still be better off moving if the deal is right.

You have to ensure you are comparing the right numbers though. You are right on the border line of moving or staying because of the mortgage amount.

koreilly

OK. Will do. Thanks very much for the advice.