Remortgage

loopylousue

Hi everyone, just looking for a bit of inspiration and a bit of a nudge in the right place. Me 52 & OH 55 years old and want to reduce mortgage term. We currently pay overall about £1132.00 per month over all 3 mortgages and would not really want to pay much more a month than this.

Background house valued about £225,000 mortgage outstanding £115,000. First mortgage outstanding at last month is £83,304 and additional borrowing outstanding £22,105 both fixed at 3.79% until 31/03/2012 when it would revert to A & L SVR of 4.24% and have 13 yrs & 2 months left on these mortgages. Additional borrowing outstanding of £11,827 at 4.99% term remaining 3 yrs & 10 months. Now I want to re-mortgage but A & L are now Santander and they would not allow us to keep the smaller borrowing separate from the other 2 accounts and pay this separately and have said if we want to re-mortgage 2 accounts they will not do this and we have to re-mortgage the whole outstanding 3 accounts into one account. We now want to reduce the mortgage term to 10 years and are looking maybe to offset with First Direct on a tracker rate however am not too sure which one to go for as if you pay a fee for the product you get a lower rate of 2.38% however if you do not pay a fee the rate is 3.29% does not seem that much higher and I am not sure basically if this would work out more in the long run. Can anyone advise or do you know of any product which may work out better for us. Thanks for looking!!

Thrugelmir

On the rates you quote. A £115k mortgage would cost £1,078 and £1,126 respectively. A difference of £48 per month.

On the basis that you keep your mortgage with First Direct for the whole term. The fee paying option is the better one.

loopylousue

Thanks for the response had been checking re-mortgages since about September so had a good idea roughly about payments etc., just didn't want to change to a wrong product and then regret it, thanks again