Abbey deals

shakie1973

Hi guys,

I recently took out a home improvement top up on my Abbey mortgage. At the time i left it on the standard variable rate, and thought i would just set up a fixed deal at a later date.I was looking at a deal of 4.99% with no fees over 5 year. I was not best pleased today when i phoned up to make a general enquiry, and was told there is no 5 year deals available. There was a 4 year deal, but they wanted about £700 plus to change it over. The next best deal was a 3 year, with a £100 pund cost. I am a novice in this field, but how come the deals are getting worse not better when the base rate is the same?
How are they not prepaired to waiver the fee when i have been a customer for many a year? and is there any better deals to be had, and if so who with?
Also does it pay me to set up a deal now or wait, are the deals likely to impove or not?

cheers guys !

beecher

Looks like fixed rates are on their way up - from looking at my own lender's website, deals have gone up by about 1% recently.

Your lender won't waiver the fee because you're an existing customer, so no point trying it. Depending on your LTV you may get a better deal than you've had offered to you, but since you haven't posted what rate you were offered, or your LTV it is impossible to say.

Note that if you go elsewhere, fees are likely to be closer to £1000.

tirednewdad

Go into the branch where they might have magers specails that aren't available over the phone- just ask them for the best offer.

I know most of the banks put thier fix rate deals up last friday and again the week before that. The value depends on the LIBOR rates not interest rates


The LIBOR rate is how much it costs for the bank to borrow money from other banks/lenders in order to lend it to you. It is believed that this rate will increase for the bank so they preempt this and pass the cost onto you!

Personally i found of the high street banks that Abbey and Natwest seemed the cheapest.

shakie1973

Thanks for the feedback, but like i say, im a novice here. What is my "LTV" well i think i know what it is, but how do i calculate it. My original mortgage had £41,000 left to pay. My home improvment top up was an additional £22,000 so that took me upto £63,000. This is now just over £62,000 as ive paid a few months off since i set it up. The abbey sent out a surveyor to value my property. Which was done back in Feb..........and i think prices have rose a few% since, and he valued at around £120,000 plus then, so whats that make my LTV?

cheers

Thrugelmir

shakie1973 wrote: »

Hi guys,

I recently took out a home improvement top up on my Abbey mortgage. At the time i left it on the standard variable rate, and thought i would just set up a fixed deal at a later date.I was looking at a deal of 4.99% with no fees over 5 year. I was not best pleased today when i phoned up to make a general enquiry, and was told there is no 5 year deals available. There was a 4 year deal, but they wanted about £700 plus to change it over. The next best deal was a 3 year, with a £100 pund cost. I am a novice in this field, but how come the deals are getting worse not better when the base rate is the same?
How are they not prepaired to waiver the fee when i have been a customer for many a year? and is there any better deals to be had, and if so who with?
Also does it pay me to set up a deal now or wait, are the deals likely to impove or not?

cheers guys !

Fixed rate mortgages are offered in tranches of limited funds. The rate offered to you reflects the cost to Abbey of borrowing the funds for the same time frame.

With interest rates likely to rise sharply at some point in the future. A 5 year year fix is the most popular choice thats why this issue has currently sold out. Particularly as most products now carry fees.

If you want to benefit from a low BOE base. Then you'll need to go for a variable rate SVR mortgage. You can't have it both ways. A fixed rate is just that.