Alliance and leicester phoned me with a better deal

Ddraig

I have just had a phone call from my local branch,from a very nice lady.Asking if I would like to come in and see if they can offer me a better deal.
I am fixed til nov2011,but she said that was not a problem and would incurr no charges for changing.

I am currently on 5.34% which she said could be significantly reduced to somewhere around the 3.1% for instance if I wanted a tracker mortgage.

This has got my brain ticking.I have an appointment with them next week .
Is it me just being healthily suspiscious,or am I missing vital information that will stuff me up down the line.
Ive always been on fixed.But the figures at the moment are so much better for the tracker.
My whole mortgage ,even if I borrow the 6 I want to do the heating and upgrades to the house would be £45 grand.So less than a 50% mortgage.
Anyone got an advise or information that may help me in my decision?thanks in advance xx

Let_Us_See

These are strange times - a bank wanting to cut your rate. Cynically, I believe they will just try and sell you additional products such as Life cover, B & C etc.

Also, I take it you originally decided on a fixed rate because you wanted to budget your monthly payments? If so, has this priority changed?

There is only one way for tracker rates to move, and that is up. Do you want to take this risk? I bet they did not offer you a lower fixed rate? That would be something to shout about!

herbiesjp

Also check the follow-on rate i.e. what you revert to after the fixed rate expires

Some A&L deals had good BoE trackers, whereas the new deals may be SVRs.

Compare what your existing deal offers to what the new deal offers

Ddraig

Thankyou,i was wondering.It isnt the norm usually for a bank to cut their profit.
And I definately need the security of a fixed rate with 3 children.

powerwin

A bank will have their own agenda for phoning you to offer you this, so always keep that in mind

Rgds

Leon_W

As Herbie says, be VERY careful of the follow on rate.

Very many A & L fixes revert to very low margins above BOE Base Rate for the remaining term of the mortgage and NOT the lenders SVR.

I very recently ported a clients mortgage that reverted to 0.75 above BOE after coming off a 3 year fix. Predictably A&L never mentioned this option when he came to move house !

Regards

dunstonh

Pre Santander days, rolling over A&L deals was the norm. Now its part of Santander, you should be on guard for cross sells and changes in T&C which suit the lender.

Ddraig

Thats what was panicking me was change of name and change of contract.I paid to stay fixed for 5 years and still have 2 left.I will check my paperwork and dont think I will bother changing my terms.
Once upon a time I was on a stupid endowment mortgage at 7.9%.So the rate I am on now for a repayment is very comfy for me.
Thankyou all so much for your advice.And I will check the rate I go to after the end date comes up.
Your advice has been very much appreciated,everyone xx