Mortgage renewal when unemployed. Urgent advice needed please.

DJC_3

Hi,

I was made redundant about a month ago, and have not yet re-started looking for work.

I am with the Abbey, and my mortgage is up for renewal on 6th August.

I rang them the other day to let them know I was looking around at some other lenders (not yet telling Abbey that I was unemployed), and they offered me a rate of 5.84% fixed over 5 years - this is more than my current rate of 5.75%
I told them that it was too high, and he came back with a 'once only offer' of 5.54%
Looking at other lenders, a lot are doing 5 year fixed at 4.99% (maybe lower).

My question is, how likely is it that Abbey will drop the offer even further if I push it?

I am assuming that no other lender will take over the mortgage as I am unemployed at the moment.

Am I stuck with Abbey, are they likely to drop the rate?
Any other advice appreciated.

In case it will make a difference, the LTV is around 75%, I have savings of around 15% the current outstanding balance and I have 30 years left on the mortgage.

Cheers in advance.

payless

If you don't like their offer, you could consider taking a no tie product from them ( even SVR) until your in a better position to interest a new lender

DJC_3

I could do, but that would be a last case scenario, I would ideally like a five year fixed.

Anyone else have any advice?

Tassotti

Not sure if legal or ethical, but Alliance and Leicester give 5 year fixed of 4.24. Give last 3 months bank statements and sorted

DJC_3

Tassotti wrote:

Not sure if legal or ethical, but Alliance and Leicester give 5 year fixed of 4.24. Give last 3 months bank statements and sorted

I can see 5.24%, but not 4.24%