Advice on Mortgage I have been offered.

Mrs_Bumble

Criteria between the 2 are changing all the time to pull them in line as many of the customers who have recently applied for anything with them will confirm. So I personally would want to know what the issue was with A & L as general criteria is more of an issue than how the 2 companies are profitting with their SVR, surely?

jill2002

The deals and score cards should come into line in September.

The point about the SVR was to show that they are not the same yet.

billa_champion

All

thanks for all your comments/advice. ATM I feel that my only option is to apply for the Abbey mortgage so as to secure the three year fixed (even though it's a mind numbing 5.99%) so I know exactly what I am paying for the three years (+ the option to overpay if I can). I could take the risk and go for A&L's SVR of 4.99% but I really would be in the sh*t if interest rates begin to rise as £950 really is the max I can pay at the moment. I know I'll have the £295 + £995 to pay to get out of A&L's mortgage/sign up to Abbey's but feel that I need to sacrifice this money as I cannot afford to lose the flat.

I am really confused!

billa_champion

Hi again!

so what do people think? Are my reasons for changing feasible? Would you wanna be tied in for three years at 5.99% just to know exactly what you are paying?

beecher

billa_champion wrote: »

Hi again!

so what do people think? Are my reasons for changing feasible? Would you wanna be tied in for three years at 5.99% just to know exactly what you are paying?

My concern would be that your LTV is too high to change. Have you phoned A&L to ask them what they value your property at? What does Zoopla say?

billa_champion

Hi Beecher

zoopla says £180,000(:eek:) but the flat opposite me (literally 5 feet away!) is valued at £215,000 if that makes sense! I cannot contact A&L today (9-5 mon-fri) will have to wait 'til monday which is really frustrating and ruining my weekend cos this is all i can think about!

beecher

Even £215000 would be too low for you to get a deal with Abbey - they've offered you that on the assumption your flat is worth £220,000. Think you've got to accept you're stuck on the SVR, unless you have at least £10,000 available to overpay.

jill2002

billa_champion wrote: »

Outstanding mortgage: £193,000
Fixed rate with Alliance and Leicester: 5.87%
Fixed Period ending: 30.09.2009
Monthly payments: £944

Have been on the phone to London and Country and have been advised that the best deal out there is:

Mortgage: £187,000
Fixed rate with Abbey: 5.99%
Fixed Period ending: October 2012
Monthly payments: £938

Where is the extra £6,000 coming from? I assume that you are paying in a lump sum?
This will obviously have a bearing on your Loan to Value

beecher

jill2002 wrote: »

Where is the extra £6,000 coming from? I assume that you are paying in a lump sum?
This will obviously have a bearing on your Loan to Value

It sounds like the OP has told Abbey that the value of their property is £220,000 and they've worked out the maximum they'd loan for their 85% deal. From what's been posted, it sounds unlikely that the flat would be valued as high as this once valuation took place.

jill2002

beecher wrote: »

It sounds like the OP has told Abbey that the value of their property is £220,000 and they've worked out the maximum they'd loan for their 85% deal. From what's been posted, it sounds unlikely that the flat would be valued as high as this once valuation took place.

But do they realise that they will have to provide £6,000 as a lump sum to enable this to go ahead? I wonder?????