Intelligent Finance offer??

SAZZLEEVANS

Hi

I hope someone might be able to point me in the right direction.

I have a discounted mortage which ends in July. Intelligent Finace are my lenders and i have just had an letter from them saying that:

The good new is that you dont need to go anywhere else to get a great mortgage. We have another great mortgage deal to meet your needs call....

What do you think? If i ring i dont want to sound really clueless which i am!!

Thank you.
Sarah
PS I have an interest only mortgage on £80,000 and the property is worth approx £95,000. I would ideally like to move to a repayment mortgage if i can. What you think??

herbiesjp

What deal have they offered you?

Moving to a repayment mortgage will mean that you are starting to reduce your mortgage amount, which is always a good thing. Have you set anything up to pay off the mortgage i.e. ISAs, savings policy etc?

Affordability has to be looked at here, so that you can see how it will affect your monthly budget.

Have a word with a fee free whole of market mortgage adviser and let them see what else you can find, once you have found out exactly what IF are offering you.

SAZZLEEVANS

Hi

I probably would prefer to have an ISA or some thing just in case...

Product
name Max loan to value Initial rate Then changing for the remainder of the term to The overall
cost for
comparison is


Fixed 95 until 1 July 2008 95%
LTV 5.19%
fixed until 01.07.08 5.70% currently
(our standalone variable mortgage rate) 5.8%
APR
Quote/Apply
Arrangement fee: £699 | Early repayment charges - 3.00% until 01.07.07, 3.00% until 01.07.08 on amount being repaid, full or in part | Additional Borrowing - the same as Intelligent Finance's standalone variable mortgage rate.


Fixed 95 until 1 July 2009 95%
LTV 5.24%
fixed until 01.07.09 5.70% currently
(our standalone variable mortgage rate) 5.8%
APR
Quote/Apply
Arrangement fee: £699 | Early repayment charges - 3.00% until 01.07.07, 3.00% until 01.07.08, 3.00% until 01.07.09 on amount being repaid, full or in part | Additional Borrowing - the same as Intelligent Finance's standalone variable mortgage rate.



Offset Fixed Rate Mortgage
With our offset fixed rate mortgage, you can choose to offset your Intelligent Finance savings and / or current account.



We'll refund the standard valuation fee and pay our own legal fees for remortgages - a contribution of £330 will need to be repaid if you redeem your mortgage on or before 01.07.08.

Key features of these mortgages:

No limit on the amount you can offset
Interest calculated on the basis of daily balances - to give you a consistently good deal
Overpayments - you can make unrestricted overpayments. Bear in mind that if you repay your mortgage in full within the fixed rate, special rate period, early repayment charges may apply
Portable - you can carry forward the special rate to a mortgage on a new property for the remainder of the special rate period


This is on their website!!

Joe_Bloggs

I have been there and done that with I.F. Are you picking offers from their website made to new borrowers ? You are not a new borrower! I got offered 0.20% below their SVR after I insisted on a redemption quote from them. This bank belongs to the HBoS group but with less competetive interest rates and less marketing budget compared to the Halifax.

Did you spot the 'special phone' number for existing customers on the page where all these offers to new borowers/new remortgaging deals were ? It made financial sense for me leave in the end as I could save £100 a month by doing so (even reducing the term by one year) . The cost of this was £800, plus very low credit card debt and a perfect credit rating by an over fussy lender. You will probably need to get lots of paper statements, official documents together for a broker and lender in any event.

Whatever you do it will cost, so save up, educate yourselves in the time so that you can then take and understand the best advice.

Was there any rules to stop you from making overpayments that would have reduced the capital and hence the interest charged on it ?
Do you have savings at the moment that could be used to pay the fees and prove to yourselves that you can afford a repayment scheme?

You don't have to understand everything in one day so read around/ask around for educational advice on anything.

J_B.

herbiesjp

Absolutely right JB.

Be careful that the rates you have seen are not for "new customers only". Give them a call and see what deal they can offer you, as I think you may find them to be different.

SAZZLEEVANS

Hi

Well i felt quite empowered thanks to you guys when i rang IF. I told the advisor i wouldnt be making my mind up until i had asked the forum..He seemed to know what i was talking about and the presusre just slipped away.

So here goes. He said:

Fixed rate tracker 4.95% until 12/08.
£299 arrangement fee.
£140 discharge fee
2% redemption thingy if i paid it back early.

Fixed rate 5.29% until 1/7/2007
£299 arrangement fee.
£140 discharge fee
5% early repayment thingy which goes down each year. (quite high i thought)

Off set tracker 4.99% until 1/12/2008
£199 arrangement fee
£140 discharge fee
2% early repayemnt thingy.

Off set tracker 4.74% until 12/08
£399 arrangment fee
£140 discharge fee
2% early repayment thingy.


I am a complete no hope as far as mortgages and finances go BUT i have started a busniness on top of my normal job and this has given me enough money to be abale to now move up from my intererst only to a repayment mortgage.

I also have the cash to pay arrangement fees etc. I have savings and i think a good credit rating.

My mortgage at the moment is for £81,000 and the property is worth approx £98,000.

I want the best deal i can get but have no idea where to start.

I would love any help i can get!!!!!

Thank you

SARAH
PS I fancy a fixed rate so i can plan for the next few years
PPS Just got a letter saying that i "had been miss sold last endowment in 1980s...Thank you everyone just waiting to hear how much £££ i get!!

Joe_Bloggs

Tell I.F. to put their offers in writing because you may well have missed a few details over the phone. The fixed rate tracker does stand out because they can't exist . A tracker may be linked to the Bank of England base rate by a fixed interest margin. For example BoE +0.35%. The fact that theE BoE rate of 4.5% has not changed in a long while may make many to think that it is indeed fixed. This is not the case.

There are winners and losers in that list of offers. Get them on official paper first.

J_B.

regularsaver1

They should send you Key facts Illustrations - as every lender does