Abbey 90% mortgage

spat08

Hello,

I am after some advice..

I am currently on the abbey SVR and they have offered me the following deals which both seem quite good to me. ( certainly alot better than we can get anywhere else). I just wondered what peoples advice were on the 2 products..

1) 3 year fixed at 4.99% with £300 fee
2) 5 year fixed at 5.49%, no fee

I am really undecided on wat to go for. the 4.99% sounds great, but im worried that in 3 years, house prices may not have recovered. the 5.49% is more expensive, but at least we would know our commitments for 5 years..

what do people think? is 3 years too short? 5 too long? rates any good..

thanks in advance

spat08

Hi, can anyone help with this?

Thanks

JayZed

Nobody's going to be able to predict medium-term interest rates with any certainty.

How much do you want to borrow and what's your LTV? Have you looked beyond Abbey?

hearts

If I had to choose. I'd go for the 5 year. Things aint going to get better any time soon. At least you'll know you can meet your payments for the next 5 years, all things remaining equal.

spat08

hi, i know people would not able to predict rates, but was just interested to hear some views..

we have a £196k mortgage and a property value of around £225k

having looked around, these are far better rates than if we were to move lenders. the best 90% around seem to be about 6% and the have the added hassle of all the paperwork etc.

I think one of these rates is what we will go for but just not sure which..

I just wondered if anyone had any opnions or ideas that may help. At the moment im thinking that the 5 year deal would be good as it gives us stability, but then i am not sure if people would reccommend the 3 year deal..

i know that noone knows what will happen, but people on here may have a better idea than i do..

thanks

spat08

hearts wrote: »

If I had to choose. I'd go for the 5 year. Things aint going to get better any time soon. At least you'll know you can meet your payments for the next 5 years, all things remaining equal.

hi, thanks for this..i know noone can tell me with certainty but hearing others opinions makes me feel a little more confident. I think the stability for 5 years could be important..

Amarillo

I am on a fix of 5.49% with Abbey that ends the beginning of September. I called recently to see if they would be able to offer us a new deal. They have our LTV as 84% and would only offer a ridiculous 1 year deal with £700 fee.

Given the choice you've been given I personally would without hesitation go for the 5 year deal for security.

spat08

Amarillo wrote: »

I am on a fix of 5.49% with Abbey that ends the beginning of September. I called recently to see if they would be able to offer us a new deal. They have our LTV as 84% and would only offer a ridiculous 1 year deal with £700 fee.

Given the choice you've been given I personally would without hesitation go for the 5 year deal for security.

again, thanks for this..

spat08

can i also ask, if we to move house, how would that work in terms of the mortgage..

this current mortgage would be portable, but say we needed another £20k, would we need to apply for this as a seperate loan, or would it be added to the current loan?

would we need the 10% for a deposit on this £20k etc?

hope this makes sense?

example..

we sell our house for £220k (after fees), we want to buy something for £240k. To get the new house we have to find an extra £20k..

if we had £5k ourselves, would we be ale to go for a 75% ltv (so £15k out of £20k) on this extra amount, or would it all be one big loan with the original £196 aswell..im not too clued up on all this so thanks for the help..