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

Forever_Red

opinions4u wrote: »

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

Thats why I put in the

Forever_Red wrote: »

I can't see the FSA getting it wrong

renegade_si

Hi

Obviously you'd have to have one of the A&L premier current accounts to be eligible for this. However, speaking to them yesterday, I can pay the mortgage amount (about £1500 for me!!) monthly into that account from my HSBC current account and the mortgage amount is taken out of that. Best to have the premier direct as it pays 0.5% interest on the money in the account too (the other premier has personal travel insurance, but as we are a family I need family cover anyway which I get from columbus for £15 each time we go abread).

On the overpayments - you can make up to 10% payment a year on the mortgage. Did you find out whether
a) this is 10% as a lump sum only at a certain time of year (as part of Santander, Abbeys is January only)
b) this is max of 10% but could be an overpayment of say £100/month (for me) which is less thna 10% over the course of the year.

Then, can you claw back the overpayments, for example, if you have financial problems, or just want the money to do stuff round the house, holidays etc?

thanks in advance. I would ask A&L but they're not in today...

PS anyone else found that if you "apply online" it seems to switch the quote for their 2.99% + 2% base rate product? It also seemed to underdo the amount I'd pay each month by around 5%....

Fairwinds

renegade_si wrote: »

Hi

Did you find out whether
a) this is 10% as a lump sum only at a certain time of year (as part of Santander, Abbeys is January only)
b) this is max of 10% but could be an overpayment of say £100/month (for me) which is less thna 10% over the course of the year.

I was told that 10% can be paid in january each year + a max of £499 can be paid of each month.
I never asked whether it can then be taken back out

Hope that helps

Gorgeous_George

Ignore this post


I make it that the ERC on the OP's mortgage is £3,185.

Taking £125,396 over 23 years would cost £694.96 per month.

However, in 31 months you will owe £116,334 whereas, if you stick with your current deal, you would owe £115,328 and no ERC.

In summary, I think you are better off sticking with what you have. Switching now only makes sense if you want to pay a premium to fix from November 2012 to March 2014 (months 32 to 60).

GG

Fairwinds

George, trying to understand your calc - why do you refer to 31 months, should that not be 40 or 41 months as I'm guessing it is the time to the finish of the original deal?

bellagio_2

i made it that I had 40 months on my current fixed deal to run it started in aug 07.

Fairwinds

That's what I thought too - and in July 2012 you will owe115,328.24 on your current deal or £114,069 on the new deal + plus the added advantage of two more years fixed at 3.99

Where have we gone wrong George

Gorgeous_George

D'oh my mistake.

August 2007 was 19 month ago so I should be using 41 months.

Will redo the figures.


ERC = £3,185

Stick with current deal, paying £697.24 and you will owe £115,328 after a total of 5 years i.e., August 2012.

Switch and you need to borrow £125,396 at 3.99% over 23 years at a cost of £694.96 per month.

After 41 months (in August 2012) you will owe £113,206 but you will be tied in for a further 19 months.

All in all, switching is the better option.

My humble apologies for the nonsense I posted earlier.

GG

rexemper

I'd also be interested in opinions as to whether 2.99% fixed for 2 years would be better or worse compared to 3.99% fixed for 5 years.

The ERC we have is £1725 on our current 5.19% deal.

Fairwinds

I'm certainly going for the 5 year as I doubt rates will be so low in 2 years time - but that bit is the gamble. If you don't want to gamble go for the 5