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Another Mortgage Express Dilemma
Options

ricriley
Posts: 44 Forumite
Hi,
I have been with Mortgage Express for 2 years in November, I managed to get a 106% first time buyer Mortgage just before the crash. As you are aware they are letting their customers jump ship free of charge.
ME pasted my details onto a company called Mortgage Force to find me a new Mortgage deal, I also spoke to my bank Nat West. This is what I was offered:
Current Mortgage: 6.79% Fixed until Nov. Reverts to PVR in November
Nat West: 6.4% fixed for 2 years.
Mortgage Force: Said that they couldn't offer me anything because I didn't yet have 10% equity in my house. Therefore I would have to pay £2000 to make up the difference. Once I had made up the 10% he could only offer me 6.5% fixed for 5 years.
Once my current term finishes I revert to the PVR which in the current climate would be 2.5% a very attractive rate.
If then house prices fell and interest rates go up, I could possibly be stuck with even less equity in my house, making it even harder to find a new mortgage deal.
I know that nobody can tell me what will happen to the economy in the next year, but I am interested in your opinioin.
I'm really not sure which route to follow with this one
.
I am tempted by the fixed rate deal rather than gambling with the BoE rates.
Does this sound like the right decision?
Thanks,
Ric
I have been with Mortgage Express for 2 years in November, I managed to get a 106% first time buyer Mortgage just before the crash. As you are aware they are letting their customers jump ship free of charge.
ME pasted my details onto a company called Mortgage Force to find me a new Mortgage deal, I also spoke to my bank Nat West. This is what I was offered:
Current Mortgage: 6.79% Fixed until Nov. Reverts to PVR in November
Nat West: 6.4% fixed for 2 years.
Mortgage Force: Said that they couldn't offer me anything because I didn't yet have 10% equity in my house. Therefore I would have to pay £2000 to make up the difference. Once I had made up the 10% he could only offer me 6.5% fixed for 5 years.
Once my current term finishes I revert to the PVR which in the current climate would be 2.5% a very attractive rate.
If then house prices fell and interest rates go up, I could possibly be stuck with even less equity in my house, making it even harder to find a new mortgage deal.
I know that nobody can tell me what will happen to the economy in the next year, but I am interested in your opinioin.
I'm really not sure which route to follow with this one

I am tempted by the fixed rate deal rather than gambling with the BoE rates.
Does this sound like the right decision?
Thanks,
Ric
2 Wins so far: £1000 on Kurt Geiger Shoes, Ben Sherman Gift Set
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