Under £40,000 outstanding, can we better this rate?

Addiscomber

We are currently paying a fixed rate of 5.75%, but this ends quite shortly. We would like another fixed rate product, preferably for at least 5 years. Our current lender (Abbey) have offered us 2 years at 6.45% or 5 years at 6.25, both with a transfer fee of £75. The amount outstanding is £38500 on a house worth about £300,000, mortgage has 10 years to go.

I know that the calculations get tricky bearing in mind the fees involved, and I wonder if people could say whether they think it is worth me putting time and effort into looking for an alternative from another lender?

millsy1980

Certainly is worth looking around as you can get some very good fees free deals. Even products with fees can look attractive if you are willing to look at the benefits. With 10 years left on your mortgage you could look at taking a long term rate, just make sure it is fully portable and has an overpayment facility. There are some good rates out for this and you wouldn't have to worry about amending your mortgage again if you were intending to let it come to its natural conclusion.

UK007BullDog

You did not say how much your income is but have you thought of trying a lifetime tracker which you could overpay and you might be able to get rid of the mortgage quicker if you can afford it?

There are definately better deals than that one you mention about for 5 yr fixed.

If you know you are not going to move in the next 5 to 10 yrs then its fine. If you might want to remortgage to release funds in the future you might look for some deals where you can add a reserve to your mortgage where you can have access without having to remortgage.

Addiscomber

Thanks to both of you.

We currently have very little spare cash as we are supporting 2 offspring through college/university, although this should improve with time. We are unlikely to move, unless the civil service decides to relocate his job, until DH retires (which will be about 10 years time). I am disabled and not likely to work again. We do make capital repayments whenever we can but overpaying, while desirable, is not absolutely top priority.

I shall read the advice on the main site and then search for a better deal.

UK007BullDog

If your hubby is a civil servant he could get some special deals for professionals depending on what he does. Talk to a whole of market fees free broker. Do not rely on the internet alone as some comparison sites are not showing all deals only the ones they are affiliated with.