Abbey's "Reduce your mortage repayments now with no early repayment charge"

nomadicmedic2005

I wondered if anyone has any advice re Abbey's offer to let me remortgage now ahead of our 2 year fixed rate coming to an end in August.

We currently have a loan of £161,999 at a rate of 5.34% until August. Total term is 30 years (~28 yrs remaining). Current repayment is £903.62 per month.

They have offered me various rates & terms but am interested in the following which would enable me to reduce my term by 5 years (alternatively I could pay £100 a month less but over 28 years).

2 years fixed at 4.29%
Monthly repayment of 903.74
Term = 23 years
Fee of £524

Does this sound reasonable or should I wait until August and see what is around then?

Thanks

dimbo61

Why just 2 years are they not offering a 3 year fix ?
Rates are very low now and the only way is up
Lots of 5 year fixed rate deals of 3.95/3.99 %abbey/HSBC 60% LTV and post office 4.15% LTV 75%
You have a big mortgage stop thinking short term unless you can pay it off in 2/3 years !!!

Thriftysaver

Hi

We've just entered into a 10yr fix with Abbey of 5.29%. I know this sounds high, but there have been a number of repossessions around here devaluing our house prices.

I know we haven't got 25% equity in our house at the moment and, I don't feel that we are going to continue with these rates in the long term. So after a long discussion with oh (our fix of 5.4 came to an end last week) we toyed around with a five year fix but we have commitments which have another 4 years to run when we will have just under £700 back in our pockets to throw at the mortgage ( I know, don't shout at me please).

What I'm trying to say is look at your own situation (other commitments etc).
I know if rates went up to 7, 8 or 9% whilst we were still paying these back then it would crucify us so therefore opted for this option. It's only save us about £13 pm from the last deal but at least we know we can afford it. We owe £139000.

HTH

Thriftysaver

Merlot

Hi, I got the same letter too today, so I called them.

I was offered a 3 year fixed rate at 4.49% with a fee of £125, £80 cheaper per month than my current mortgage.

I was also offered the option to overpay by 10% each year, to port the mortgage if needed. redemption pen - 3% of outstanding balance, which seems to the norm.

Best of all, no valuation fees, no legal fees, no credit check etc.

I have opted to take the mortgage offered, 3 years fixed is could enough for me at this time, I was offered 4 years fixed at 4.99%, but I may be in a position to repay my mortgage before then.

Why is your fee so high?

Merlot.x.