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Mortgage offer

My Nieces fixed rate mortgage comes to an end in November which is 6.65.
The new offer is 2.99 variable or 6.09 fixed for a further 5 years.
In the present climate could someone suggest which option would be best for a young family.

Comments

  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    What is the outstanding mortgage amount and term?
    "You were only supposed to blow the bl**dy doors off!!"
  • maljo
    maljo Posts: 26 Forumite
    I would have to find that out tomorrow as they would have gone to bed now. Thanks for now
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What is the follow on rate(no fees) and the fess for these new offers?
  • maljo
    maljo Posts: 26 Forumite
    Not sure about follow on fees.
    The term was over 35 years and they owe £98000.
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    What is the property value.

    Who is the lender?

    Any credit history issue?
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • koexelek
    koexelek Posts: 7,847 Forumite
    As long as they have the ability to cope with any potential rate rises, the 2.99% looks the best option fo the time being.
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • belfastgirl23
    belfastgirl23 Posts: 8,025 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    Is the 2.99 the standard variable rate? If so is it pegged to anything (Bank of England, LIBOR)? Also how are they off financially, would a rise in rates really be a huge problem for them? And what is their attitude to risk? :)
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