Should I stay or should i go now....

badgerbadger_3

1sp post so bear with me if this has been said a million times before.

My fixed 5yr with Abbey is coming to an end. I was looking 2yr fixed and Abbey are quoting 6% or so. For new borrowers they offer 4.99% though they have to pay setup fees. So am thinking should I stay at the 6% rate with no setup fees or should I go elsewhere and get a lower, 4.99% and pay setup fees?

Ian_W

It really depends how large your mortgage is and how large the fees are that a new lender will charge you. The smaller the mortgage the greater the affect of charges.
For example, Nationwide have a 4.97 fixed for 2 years with £600 in fees but free valuation and legals. If you add the fees and the redemption fee Abbey will charge you if you leave them, which I think is £225 and divide them by the 24 months you'll find they add about £35pm to the monthly cost. If you get a monthly cost from Abbey and see if NW [or whichever other lender you choose] + the fees is cheaper or not.

HTH.

Russ66

Give them a ring, they have special "Retention" deals that they can offer to existing customers over the phone.
I'm on my fourth one with them now and I'm happy.:j

MortgageMamma

Abbey's retention deals are notoriously rubbish. Tell them you are looking elsewhere and see if they come up with something better. In the meantime instruct a broker to look at the alternatives for you.

badgerbadger_3

Thanks. Just spoke to them. No retention deal!! The swines. They offerewd me a tracker at 4.99% with 600 quid setup charge. Sounds ok but can get that elsewhere and cheaper. Also get the feeling that interest rates may be going up soon as inflation due to energy and oil going up. Hmmmm. Can't believe they will let me go rather than give me the same rate as say the Portman.

MortgageMamma

badgerbadger wrote:

Thanks. Just spoke to them. No retention deal!! The swines. They offerewd me a tracker at 4.99% with 600 quid setup charge. Sounds ok but can get that elsewhere and cheaper. Also get the feeling that interest rates may be going up soon as inflation due to energy and oil going up. Hmmmm. Can't believe they will let me go rather than give me the same rate as say the Portman.

Told you. rubbish. if you want a lender you can stay with on good deals first active are a good bet.

MM