please help mortgage query

DMC75_2

We have a mortgage running out on 31st jan 2009 with nationwide fixed at 4.89% and options are to go :

Go on nationwide standard variable at 4%
we have a tracker reserved with First active 0.79% above interest rate (2.29%). To do this we need to find £1900 (as we only got 76% LTV instead of 75% and there is a £999 fee

Thanks

_Andy_

Hi

What is the query exactly? Is it that you're trying to decide between the two or is that you're querying where to get the £1900 from?

DMC75_2

Im trying to decide bewteen the two, Thanks

DMC75_2

please help mortgage advisor wants to know which way to go , if we have to find money it will be a debt on a credit card

sarahemmm

You can work out the monthly payments on each rate, and how much it will cost you to pay off the credit card. Just do the sums (or make your adviser do it for you!)

beecher

Didn't the broker break down the payments for you in order for you to decide? I'd have thought that was the whole point in going for advice!

If they didn't, then

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

DMC75_2

Thanks , worked out at current rates would take 9 months to clear the credit card debt .

Still not sure which to do as then we are tied into that tracker rate for 2 years.

any opionions

beecher

DMC75 wrote: »

Thanks , worked out at current rates would take 9 months to clear the credit card debt .

Still not sure which to do as then we are tied into that tracker rate for 2 years.

any opionions

Is that including the interest on the credit card?

Is there a collar on the tracker? And how high are the Early Repayment Charge?

It looks not a bad option to me as long as you're sure you will pay off the credit card in 9 months and not spend the money elsewhere - what does your mortgage adviser say?

DMC75_2

Yes including interest but as there is a £999 fee which would have to be added to the mortgage making 139500 or continuing with current one (140,500)at svr (4% I believe) with nationwide . I think ERC is 2%.

My advisor is going to check rates with first active and nationwide

I ideally want to grab a fixed cheap 5yr rate when I can hoping for around 5%. But if I take tracker will be tied for 2 yrs

Still not sure what to do ?

Thanks

beecher

If you're wanting a 5 year fix then I think you should sit on the SVR until you find one. You then avoiding fees/ERCs until the deal you want comes up. I thought the £1900 was everything included.

Has your broker looked for those deals - there are 5% rates for low LTVs available just now. If your LTV is highish it might change your options.

Have you thought of going to a different broker? Yours doesn't sound that great - why isn't he looking at the rates for more banks?

DMC75_2

about 2 months ago we had a mortage valuation and hence his reasoning for going with same company as he thought we might not get the same 76% LTV as we did with them.

Think I may try another advisor but thanks for advice regarding staying on SVR