A&L 3.99 5yr fix no fee should I ditch my 5.34 5 yr fix??

bellagio_2

I would like a little bit of help and advice as to whether my thinking is correct please.

I have a Nationwide 5.34% 5 yr fix taken in Aug 07, I borrowed £125k over 30 yrs. I have been repaying £697.24 p/m & cost to redeem mtge including fees is today £125,396.09. property was worth £248,000 when purchased in Aug 2007, so value now £210-£215k.

If I take the A&L 3.99 no fee 5yr fix and borrow £126 over 23 years, by my reckoning my repayments would be £1.06 p/m more (£698.30) and my mtge would be 5yrs and 4 months shorter.

This seems to good to be true, have i made an error, are there any other factors i have missed out that I need to consider?

oh, both existing and new mtge are and would be repayment.

beecher

Are you sure that's including the Early Repayment Fee?

bellagio_2

yep I called them today, thats what they said todays redemption figure is.

Fairwinds

BBc website says £706.04

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

haven't checked it elsewhere.

I'm considering this mortgage as well and ditching Nationwide 5 yr fixed - I posted a similar thread earlier

bellagio_2

thats interesting, i used this calculator:

http://www.abbey-products.com/mortgages/repayment-calculator/index.htm

and this one also makes it £698.30

http://yahoo.charcol.co.uk/knowledge-resources/calculators/loan-cost/

strange how the bbc calculates it differently i wonder which is correct?

Forever_Red

Using this one it is £698.30 - I can't see the FSA getting it wrong

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

Alan

dimbo61

What you bellagio and gordonD need to work out is how much you will still owe at the end of your existing deal with Nationwide ( in 4 years ! ) and how in 4! years on the new deal ( taking into account the ERC ) on the A & L deal.
Use "whatsthecost" and check on DETAILS then go down 4 years and see what you get.
On your existing deal you will have paid off nearly £10,000 after 5 years
and still owe £115,328
With the new deal you would owe £111,487.86 after 4 years !!£107,483.9 after the full 5 year term without any overpayments.
Good Luck on your decision.

opinions4u

Forever_Red wrote: »

Using this one it is £698.30 - I can't see the FSA getting it wrong

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

Alan

There have been numerous examples of the FSA's own site having inaccurate information on it.

There's also the rather undeniable fact that they got their regulation of the whole banking sector well and truly wrong!!

That said, I think the figures you link to are right!

bellagio_2

thanks dimbo, that was just what i was looking for the whatsthecost calculator.

bellagio_2

Its all sounding and looking good the A&L deal, when we got our Nationwide mortgage we had 2 salaries totaling £45k+. Now due to starting a family the household income is £33.5k approx including £4k bonus and £6k self employed income. We have squeeky clean credit histories with no missed payments or debts elsewhere etc, but does anyone know if our lower income will now be a problem in re-mortgaging £125-£126k?

rexemper

Seems like the salary multiples have tightened up a little - at least with FD when I called them yesterday.
Having said that, 4X is still easy to get.
Cheers