Fixed rate 100% mortgage with alliance and lecister coming to end... help!!

tarakul

Hi All

I have a fixed rate deal at 5.25% coming to an end in April. As it is 100% what is the best way to get a good deal? Is my only option to go onto their standard rate? I can't seem to find any deals for my situation

All help would be greatly appreciated

Taz

beecher

I think your only option is - as you say - to go onto their Standard Variable Rate. What is your outstanding mortgage amount, and a realistic valuation for your property? If your Loan to Value is higher than 90% then A&L is your only bet. Check your documentation to make sure that it is in the SVR you go onto, and not a tracker, and get in touch with A&L to see if there are any deals available to you.

tarakul

Hi, thanks for the reply. I think you are right. The property was purchased for 83000 and is probably worth about same now as I got it at a bargain and similar studio properties in Brighton are selling for approx 90k.

The other complication is I took a loan as part of the deal of 5000 to cover repairs.

Badger_Lady

Find out what the standard rate is - my deal ends in June, but my standard rate is currently 4%! So no worries there

beecher

Their SVR is 5.09% at the moment and still under review after the last rate cut.

Badger_Lady

Ah, so Tarakul's payments will go down at the end of their deal, then! Can't be bad... of course, if you enjoy a fixed rate they may well be happy to negotiate one with you as an existing customer...

kazd

Looks like their svr is 5.09% which is quite high

Gorgeous_George

The OP is lucky that the economic turmoil hit the UK when it did.

When the mortgage was taken out, it was more likely that rates would rise by the time the fix ended.

£83K is a relatively modest sum but I'd still want to reduce this as quickly as possible. It is importantto improve your LTV enough to qualify you for a better deal if/when rates start to rise to more normal levels.

GG

tarakul

This is great, what I will do is check paperwork to see if I go onto svr and what that will be. Then I will call them and try and negotiate a fixed rate deal hopefully at a rate lower than their svr. I will also switch to capital repayment as opposed to interest only

I think that covers everything. Does not seem a good use of time calling any one but alliance given my circumstances

Thanks all!

beecher

tarakul wrote: »

Then I will call them and try and negotiate a fixed rate deal hopefully at a rate lower than their svr.

I'd hold off on that one til nearer the time - or at least make sure that you are able to jump onto a cheaper fixed rate if it becomes available before April, or indeed stay on the SVR if you prefer. If base rates go down another 0.5% before April, the SVR might be down to closer to 4% by the time your deal is up.

stuarthouse

Hi there

According to http://www.money.co.uk/mortgages/100-mortgages.htm & http://www.fsa.gov.uk/tables/

sorry to say there are no 100% available.


Moving the SVR is the only option ... it should be less than your current rate
and hopefully once thye've taken the base rate 1% into account their SVR should fall to around 4-4.5%.