Variable Mortgage?????

chiara1979

Haven't done this before so forgive me if this is in the wrong place.
Me and my husband have split up and I want to buy him out of the mortgage. We are currently with Abbey and they have said it looks ok for me to get the mortgage I want on my own! They have offered me 5.69% on a 3 year variable mortgage! Is this any good???? I have always had fixed rate mortgages and they are saying this is all they can offer me! I'm desperate to buy my ex out so any advice would be gratefully recevied! Many thanks

Trying_to_be_good

It all depends if you can afford for that rate to go up in the three years - base rate is only 0.5% at the moment, so could easily go up 5 percentage points or more in the three years. Could you afford 10.69%? If not, you should look for a fixed rate somewhere.

herbiesjp

Are you tied in to Abbey?

If not have a look at other lenders, and see if they could offer the mortgage to you on your own, and at what rates.

If you are confident to do this yourself make sure the lenders you approach do not do any credit searches unless they are sure they can help. Otherwise go via a whole of market mortgage adviser

Robert_Sterling_3

While rates are at an all time low, all other thing being equal which often they are not, it makes sense to select a long term fix on a low rate loan.

[ Did I hear you ask "How low is low and how long is long?" ]

jill2002

Why would you choose a variable rate that is higher than the Standard Variable Rate with Abbey? The SVR is 4.24% and will cost you nothing to go onto. I understand that this is all that they will offer you and I assume that you have a high loan to value, otherwise they would have offered you more. Therefore, the likelyhood of you getting a better deal elsewhere is low.

If you take this variable rate at 5.69% - it is either 5.19% above the B of E rate or 1.45% above the standard variable rate AND you will be tied in. Better to allow your mortgage to go onto the Standard Variable Rate 4.24% and you will be free to leave if you have the opportunity to get a better deal elsewhere.