Plese help offer ends tommorow.

Weresmydosh

Hi all & thanks in advance.
short as possible
Lost job in February due to rescission .(building trade).transferred mortgage to interest only.
wife works nurse so steady .(we owe no money/hp cars etc except mortgage)
present deal soon to expire.
House worth £225k had it valued by lender as did not agree with there initial estimation of 180K bases on 2007 survey. I owe nearly 162K Resent sales (this year) on my estate for smaller property's have been 220--230k
Lender A&L have offered me the following on intrest only
vVariable rate @4.99%
2 yr tracker BofE base + 3.09% =3.59% fee £599, payment would be at present including taking one 24th of fee into account £510.11
2 yr fixed at 4.29 no fee, £577.66 a month
3yr tracker no fee BofE +3.09% = 3.99% payment 537.17
5 yr fixed at 5.79% to high a rate I feel.is to high.
Do I go on variable and hope lender lowers there deals as seems to be the consensus on this site even though they have gone up recently.
2 yr fix and relax.
2 yr tracker knowing with 2 rises of .25% in next two years i am still better off.
I have already decided if after next two years if I cannot afford to go capital and interest, kids will have gone to Uni so down size and stop being a slave to the mortgage start living life a bit.
Please if you have read this far please put a responce as I am good at making the WRONG decision
Thank you

StuTheDon

These are good deals and you are not going to get a better deal from another providor as you are currently unemployed. Your wife's income is unlikely to cover the salary multiple for anything else I guess.

I assume your current providor knows you were made redundant?

Your other option is just to stay on your lenders Standard Variable Rate until you get another job?

unite79

Do you not have a duty to advise the lender about your change in circumstances - Ie Lost job - Think you have that question in the event you change deals!

'Should ther be any change to your application, such as ........You have a duty to advise lender!

_Andy_

As there is no further borrowing there is no need to discuss income with the lender.

Mrs_Bumble

From what you have said above you are not in a position to move away from A&L.

So the real issue is what can you afford?

Can you afford for a variable interest rate that could go up, and up? Do you have the spare income to go with interest rate increases?

Or do you need the stability of knowing that your mortgage payments are going to going to be XYZ each month?

How long you fix or track for again is really down to your circumstances? Do you think that house prices will increase in the near future? Do you see yourself moving in the next couple of years? What length of time are you personally comfortable with? You need to bear in mind that in the future if you remortgage away it will likely cost you arrangement fees and solicitors costs etc. Will your personal circumstances have improved in 2 years? Does 2 years give you enough security?

A&L are offering you good deal the fixed rates I think are particuarly attractive with no fees, even the 5 year is not too bad.

The trackers may look attractive but if the base rate goes back up to 2%, 3%, 4% do they look quite as attractive?

It is worth checking what houses actually sold for in your area as what they were up for is not a good indicator as buyers knocking down prices and lenders down valuing is common, sites like https://www.zoopla.co.uk are good places to have a look because they take the information from the land registry.

Weresmydosh

Hi
I have informed lender from on-set about my loss of job.
Compared to some other people on this site I know all the deals I am being offered are as good as they can get for me all things considered.
What I am trying to ascertain is in opinions from the list above what is considered the best deal (I have 12-14k savings if the need arises).
Thank you

StuTheDon

The fact you have listed the monthly payments makes me think that you want to keep the monthly payments as low as you possibly can given your circumstances.

If it were me, I would go for the 2 yr fixed simply becasue I like the security of knowing what i will pay.

The tracker is good too but I think interest rates will rise much more than 2 increases of .25% in the next 2 years. Once the economy recovers, and inflation starts to come up the first thing they will do is raise interest rates to make sure things dont overheat.

You need to tell us what your priority is. As cheap as possible over next two years, cheapest over the length of the mortgage etc?