Deadline looming - Mortgage advisers would love your opinion

natman

Hi there.
I shall cut to the chase......... My Fix rate is ending soon. I had posted a while ago but i did not have many comments.

we have a house valued at approx £210,000. Good credit history
both in employment earning around £40k between us.

I have a mortgage with Britannia building society - the mortgage has two parts. I owe approx £88, 830 in total.

Part 1 - 0.75% above base for term ( currently 1.25%) owing £23, 170.
part 2 - 5.09% fix ending soon and reverting to SVR of 4.24% owing £66,775

I would like to keep my 0.75% above base but that means sticking with Britannia and taking a new product on 66k, but Britannia do not seem competitive.
they have a 3 year fix at 4.39%
they have a base rate tracker at 2.69% above base
both deals dont seem that great.

My questions are - am I being too rigid in wanting to keep my 0.75% above base which is preventing me from looking elsewhere or am I right in trying to keep hold of it.

ING Direct has a base rate that tracks at 1.89% above base, this would be for the total of 88k.
Would you get rid of 0.75% above base(23k) and fix at 4.39%(66k) for the ING tracker for total of £88k

In addition to make things a little more complicated -
we have savings of £30,000.
we are thinking of starting a family.

Theres a lot going on i know, but would really love your thoughts. If any mortgage advisers read this, I would love your thoughts.

Many many thanks.
N

getmore4less

can you go interest only on the base+0.75% worth asking.

If you can I would take the tracker and overpay the larger part.

Might be worth doing that anyway.

I would also probably pay some off with savings.

How much would depent on projected cash flow that will change with starting a family.


Also do the numbers to get a comparison for moving the loan elsewhere.

natman

I had not really thought about placing the 0.75% base tracker on interest only - something to consider yes.
I am reluctant to pay off with savings as most of the savings is in an ISA getting around 3.5%. I also like the security of savings. But also acknowledge that paying off some mortgage provides you with some security and less debt etc.

I have taken a few online quotes and compared to Britannia set up -

ING Direct 1.89% ABOVE BASE (would be 2.39%) loan of £88, 850 over 21 years = £448 a month ( my savings would be in a greater interest bearing account also)
ING Direct 5 year fix 3.99% loan of £88,850 over 21 years £521 then £503
Britannia 0.75% base for £22, 125 and 4.39% fix on £66, 725 total per month = £504.43 or
Britannia 0.75% base for £22, 125 and base rate tracker 2.69% above totaling 3.19% on 66, 725 total per month = £467

So it would appear as though the ING 1.89 ABOVE base would the best on paper........... but there is £999 fee for it

Thanks for your reply

getmore4less

http://www.whatsthecost.com/mortgage.aspx

ING Direct 1.89% ABOVE BASE (would be 2.39%) loan of £88, 850 over 21 years = £448 a month (£448.77)

add £999 fees £453.82

so still slighly better

If you plan to make overpayments it will make the current deals close the gap