Brittania mortgage offer

JVRMac

Just rec'd a letter from my current mortgage providers Brittania, advising that as a valued cus they are giving me the opportunity to swap my current product to a new lower fixed rate product.... :j So after ringing them they have offered to transfer me on a new 5 year fixed rate at 5.19% instead of my current 3 yr fixed rate of 5.99%.

Outstanding mortgate is £82,682 with 19yrs 6mnths remaining, currently in 3yr fixed rate until Oct 2010, paying £600.51 per month on repayment. They are offering to waive my early repayment charges of £1700 and my monthly payments will reduce to £562 per month for the next 5 years and there will be no charges for making the ammendments.

My dilemma is whether this is a good deal or not???? I thought the interest rates were really low, so I don't know if I am just tying my self into another overpriced deal for a longer term, or am I being too cynical and Britannia really have my custom at heart and are making me a fantastic offer

Any advice or thoughts would be appreciated.

opinions4u

JVRMac wrote: »

Just rec'd a letter from my current mortgage providers Brittania, advising that as a valued cus they are giving me the opportunity to swap my current product to a new lower fixed rate product.... :j So after ringing them they have offered to transfer me on a new 5 year fixed rate at 5.19% instead of my current 3 yr fixed rate of 5.99%.

Outstanding mortgate is £82,682 with 19yrs 6mnths remaining, currently in 3yr fixed rate until Oct 2010, paying £600.51 per month on repayment. They are offering to waive my early repayment charges of £1700 and my monthly payments will reduce to £562 per month for the next 5 years and there will be no charges for making the ammendments.

My dilemma is whether this is a good deal or not???? I thought the interest rates were really low,

Let us have a realistic idea as to the value of your property.

How much did you pay for it, when was that, and how much do you think it's worth now.

The people can better value this offer against what else is on the market.

so I don't know if I am just tying my self into another overpriced deal for a longer term, or am I being too cynical and Britannia really have my custom at heart and are making me a fantastic offer

It may well be an offer that's good for your circumstances, but I would think they have excellent commercial reasons for offering it to you as well. If they win and you win that's a good thing.

Let other posters know those valuation details and you can have better support.

JVRMac

We purchased the house in 2003 for £95,000, not sure on what it's worth now in the current climate but I would guesstimate between £125,000 - £150,000.

Many thanks