"Simply not solvent!

Seaxwyn

Thanks Sarah - that's my gut feeling too but it makes my head spin trying to work out if 4.9% plus 3% fee is better than 6.95% with no fee!

I like the Sainsburys card more - the customer service ladies are so nice and the website is really easy to use - but I know that's irrational so shouldn't guide my decision!

SarahNeedle1872

Seaxwyn wrote: »

Thanks Sarah - that's my gut feeling too but it makes my head spin trying to work out if 4.9% plus 3% fee is better than 6.95% with no fee!

I like the Sainsburys card more - the customer service ladies are so nice and the website is really easy to use - but I know that's irrational so shouldn't guide my decision!

It can be a factor if thats important to you.... There are certain companies, such as 3 mobile that we would never use again because their customer service is shocking! I bank with First direct, and wouldn't dream of moving from them because every time u call them, a person picks up the phone, and 9 times out of 10 they deal with ur problem in one phone call.

I expect someone from the CC board will be able to tell u the figures, they're pretty good at that!

bandraoi

I think it depends on how long you intend to take to pay off the credit card.

The way I would look at it, is that the 4.9% card is 7.9% for the first year and 4.9% for the next 18 months. The other card is 6.95% throughout.

Have a play with the snowball calculator, but my instinct would say 6.95% permanently is better.

Seaxwyn

And now for the mortgage...... I have just posted the following on the mortgages board and again would really appreciate any comments.

Hi there, I would really appreciate some advice and/or views.

We have a mortgage with Abbey, £150,942 outstanding (currently paying interest only) and the fixed rate ends in June.

I've discussed options with Abbey and they have offered a fixed rate of 5.75% for 5 or 7 years. With a £125 set up fee. We could overpay up to 10% of the balance each year without penalty.

Or a flexi/offset type account at 0.59% above the BoE rate - with an arrangement fee of £995.

The woman said the rates are changing tomorrow so she urged me to sign up today. Is this likely to be true or just a hard sell tactic?

I'm inclined to go for the fixed rate for 5 years. That would mean no increase for the period while we are also paying a large loan, after which I hope we can pay the mortgage faster.

I haven't shopped around, but am not too confident we'd even get accepted by another lender as we are both self-employed, my husband is 58, and have a lot of other debt - although our credit records are good with no missed payments etc.

Please could someone advise whether the Abbey deal looks worth accepting or whether I should wait and/or shop around.

Thanks!

Karmacat

Until bandraoi said the above, I'd havebeen tempted to go with the Sainsbury one too, I certainly agree with what Sarah said. Thinking about the CS levels and the website *isn't* irrational, actually - we know how bad we can feel when we've got bad CS people to deal with. Its not only about finances, thats all.

However. 7.9% isn't a lot more than 6.95%, and that difference is wiped out by two years of the difference between 6.95% and 4.9%. So logically, its the goldfish card. Ulp. Good luck making that decision!

taxi73

Regarding the CC I would put it on Sainsburys and then leave the EGG at nil balance ready for anniversary offer next year(you may want iT)
Shut the Abbey it doesn't seem much use....
The mortgage I would go and see a broker and try and see if he can get you a better offer than Abbey..there is no reason being s/e that you can't get a mortgage elsewhere...I would fix one soon as the mortgages are changing all the time.
As you know I sorted mine in Jan for now...it was 5.25% tracker offset etc +0.49 %...it tracked the last interest rate si is already less than it was in jan..but that same deal now on their site is 6.44....so sooner rather than later would be best I think..though they do good offers for existing customers...so sorting out now would be best for peace off mind I think

Seaxwyn

I've accepted the 5 yr fixed rate Abbey mortgage - the paperwork is in the post and I have a 14 day cooling off period if I change my mind but actually I feel really relieved. The payments will only be £20.73 a month more than we pay at present.

And then I applied for a Virgin credit card with 0% balance transfer for 15 months (recommended on this site) and you'll never guess what - I was accepted! With a credit limit of £8,500! So the Egg balance has gone on there and I don't have to tax my brain choosing between the Sainsbury's and Goldfish offers after all.

I don't believe it!

Those two things have been hanging over me all year and I can't quite take in that it was so easy. I'm going to celebrate by blowing £11.95 on a haircut.

taxi73

Thats great news what a productive day for you!!!

SarahNeedle1872

Well that certainly makes the decision a whole lot easier! I'm glad u got it sorted, and hope u enjoy your haircut!

Sarah x

Karmacat

Fantastic news! I'm really pleased for you - the mortgage, in particular, after all the doom and gloom about the way rates will go up for some people, thats great.