What Should We Do????

unibumuk

Here's my situation:

-Took out a 40 year mortgage as a first time buyer in December 2006 with A+L, 2 year fixed rate 4.74%

-The 2 year fixed rate will come to an end soon, since last week we will be on a SVR rate of 7.19%

-Our mortgage repayments will go up from £632 a month to £862 a month if we move to the SVR rate. A lot of money, so we are quite eager to move back to something better, a fixed rate if poss so we know what's going out each month.

-I called A+L today. No evidence of a SVR cut after the base rate drop last week - yet.

Here's what we were planning to do before we heard about the cut in interest rates:

After using L+C, we were offered a new fixed mortgage deal with Nationwide of 6.13% for 2 years with a product fee of 999 pounds (added to the mortgage) but when the valuer came out she valued the house at 142000 from the 155000 we paid in December 2006. I have checked on http://www.nethouseprices.com/index.php?con=Search-Sold-House-Prices and there is nothing in comparison been sold in the last three months, so that deal has fallen through.

A+L now seem our best option due to no valuation etc and have now offered us 2 Year Fixed6.49%
until 31.10.10with a 1% fee




On this we will be paying £797.50 a month for the 2 years with the fee added, £165 a month more than now.

THE QUESTION:

Should we sign up for this 2 year fixed rate deal now or stay on the SVR rate at A+L for a little bit when our current deals end and hope that we can get a better fixed rate in the near future? What are others on a SVR rate out there doing? Would be gutted if we signed the paperwork and then found out that had we waited a few months we could have got a much better fixed deal.

Any opinions and comments on this are very much welcome! :A

(A lot of this copied from another thread and adapted to our circumstances)

minimike2

What is the outstanding balance of the mortgage?

unibumuk

133600, sorry I forgot about that!!!

Toughluck

did you actually get a mortgage offer from Nationwide becasue I am not sure that they are doing 95% for new people now.

Save yourself the heartache and stay with A&L for a while whether on SVR or a new deal.

unibumuk

No I didn't get the mortgage from Nationwide. If I stay on the SVR, do you think better rates will come in?

atlantis187

If u can get the LTV down to 90% u could apply to First Direct SVR currently at 5.5% probably cheapest SVR around and also has the added bonus of being able to offset other money.