Is this a reasonable compromise?

Gambler

We have 2 seperate mortgages with C&G:

2 year fix £27K @ 4.99% expires 30-Apr-06
5 year fix £83K @ 5.89% expires 31-Aug-06

They have offered to fix the £27K for a further 2 years at 4.45% and also to fix the £83K for 2 years at 4.45%, starting 01-Sep-06. Both mortgages would then run until May 2008.

There would be one fee payable of £499.


Other options are to let the £27K go on to their SVR at 6.5% for 4 months and then move lender at the end of August, or to pay off the £27K, again with a view to moving at the end of August.

payless

Obviously means you will have same problem in 2 yrs , but only levying 1 fee seems very good of them

If you leave they would charge a closing fee anyhow, and you would have paid interest at a higher rate for 4 months on the small bit

Have you funds to pay out the £27K ?? Are you likely to get a much better rate without paying a lot more in fees ???

Gambler

at least the mortages would end at the same time in 2 years time.

Closing fee is £225. I have a large stoozepot which would cover the £27K.

But it seems reasonable to me and obviously would be less hassle. There doesn't seem to be any better rates out there without taking the fees into account.

payless

so its not actually 2 yrs on both elements then - rather to 31/5/08 ??

Think you got a fair result

regularsaver1

sounds good to me

Gambler

cheers guys, now do I pay the £500 fee upfront or add it to the mortage?

regularsaver1

if you add it you will be paying interest on it - and sometimes this is at a different rate to thew mortgage (ie standard variable) - i presume you KFi's with both options?

homer_j_3

Or you could add to the mortgage and ensure evreything goes through smoothly and then repay as part of an overpayment upon completion? (If overpayments are a feature that is)

This will ensure you do not end up 500 out of pocket..

Gambler

Thanks homer, 10% repayments per year are allowed so that is a good idea.

Gambler

homer_j wrote:

Or you could add to the mortgage and ensure evreything goes through smoothly and then repay as part of an overpayment upon completion? (If overpayments are a feature that is)

This will ensure you do not end up 500 out of pocket..

Wish i had followed this advice as the mortgage has not gone through as it should have.

The first part of £27K was fine but then we had a letter concerning the £83K and that from 01/09/06 we would be paying SVR, a total of £744 per month.

Queried this with the local branch who set the mortgage up and were assured that it was a standard computer generated letter and the note on our account would ensure 4.45%.

Guess what, first payment comes out on Monday, £744. About £90 more than it should be.

Not pleased at all by this. I would never have paid £500 just to fix the small part of the mortgage, it just wouldn't make financial sense.

Can't wait for the branch to open this morning!

Gambler

Gambler wrote:

Wish i had followed this advice as the mortgage has not gone through as it should have.

The first part of £27K was fine but then we had a letter concerning the £83K and that from 01/09/06 we would be paying SVR, a total of £744 per month.

Queried this with the local branch who set the mortgage up and were assured that it was a standard computer generated letter and the note on our account would ensure 4.45%.

Guess what, first payment comes out on Monday, £744. About £90 more than it should be.

Not pleased at all by this. I would never have paid £500 just to fix the small part of the mortgage, it just wouldn't make financial sense.

Can't wait for the branch to open this morning!

Phoned the branch that same day and the manager was too busy to speak to me!

Phoned head office and they said it was 4.45% showing on the system but as we hadn't returned the paperwork, duly signed, it had gone through on SVR. We have not received any forms to sign.

Now £90 is a lot to us at the moment in terms of monthly budgeting as Mrs. Gambler is 6 months into maternity leave so we are down to one income for a while. Asked for a refund and this can't be done until forms are returned so will send duplicates in the post.

Phoned again yesterday as still the forms have not been received and C&G couldn't understand why.

What really annoys me is that we were charged and paid immediately £499 for the change of mortgage.

I am going to write a letter of complaint, how likely could I get the fee refunded?

Thanks