Remortgage - Best option

lightspeed

Hi

I currently have a 3 year fixed rate deal @5.99% IO with Alliance and Leicester LTV (approx 70%).

My current deal ends on the 30th April and i am looking at current rates to see what is best.

with my current lender i am looking @ 4.64% over 4 years (fixed) or 4.99% over 5 years (fixed).

Are there any better deals?

Any advice would appreciated - thanks

shortchanged_2

Do you have a repayment vehicle in place for your IO mortgage?

lightspeed

I have an ISA that i pay into monthly (approx £250)

I am on IO due to the circumstances i was in at the time of taking out the mortgage (had to buy partner out) - i realise repayment would be better but at the moment the flexibility that IO provides me with is important.

dimbo61

Dont know if there are any better deals but any new lender would want you to have a repayment mortgage and both deals offered by A&L are cheaper than the interest rate you are paying now.
Are you allowed to overpay and clear some of the capital each month

lightspeed

this is what i need to check.

i have just been running through some figures and think that i have decided to switch to a repayment mortgage. I can afford to do this with some leeway.

Any idea if i would be able to book the deal this week even though my current deal doesnt end until the end of april?

Is it also possible to revert back to a 25 year mortgage from my current 22 to make the payments more affordable?

thanks

dimbo61

Yes you should have no problems getting the new mortgage sorted for the next of april.
Dont know your age but if under 40? should be no problem ( you dont want a mortgage past 65)

lightspeed

thanks for the reply - i am 29

just come accross a deal with the yorkshire building society @ 4.79% for 5 years (25% deposit)