Any reason not to do this? A+L 3.99 5Yr fix

Fairwinds

Currently on 5 yr fix with Nationwide at 5.89% taken out last September - £48k Loan, ERC= £1400

Can get 3.99 5 yr fix with A&L no arrangement fee

Thinking this would save me £81 a month and would take 17/18months to repay the charges and then be in profit.

Only slight issue I can see is that last endowment matures Nov 20013 and wouldn't be able to pay off mortgage till Apr 14 - so would need to stick th money in the bank for 6 months ( might even make profit on it deoending on rates in2013/14)

I'm not missing anything am I - seems a no bainer

Fairwinds

No adverse comment, so i'll go for that then

123oleary

some people think that when the economy improves interest rates will rocket to control inflation, if this is right how does it affect you

Fairwinds

Well they're both 5 year fixes (although the current one is 6 months in) and mortgage will be paid of at the end of it. If I've got my sums right I reckon it should save me £3k over the piece

Taylo_2

So long as you are not close to a LTV threshold at 65% then it seems like a good one to go for. It is a refunded valuation, so long as you complete with them then you get it back, but if for example you were close to the 65% LTV barrier and they downvalued your house then you may lose your val fee. If not then would say you are onto a winner.

Fairwinds

Thanks Taylo, I hadn't considered that as an option but we should be okay as we aren't that close to the 60%.

Thanks for the heads up though