Re-Mortgaging Advice Required

PasPer2

Hello,

I have been dealing with a company called The Mortgage Matters Partnership to find me a more competitive mortgage than my current Halifax one. The deal they have advised me to buy in to is a 10 year fixed rate repayment mortgage, borrowing £80k. The fixed rate is 5.29%.

The amount borrowed will clear my CC/loan debts and consolidate it all in to just the mortgage payment. To me personally, it appeared to be an attractive deal, but any thoughts would be welcome.

I have also agreed in principal to take out accident/sickness cover with the mortgage but this is appearing less attractive the more i read on these forums.

I look forward to any advice that is on offer.

Alex

toonfish

product looks OK as long as you are happy to fix for 10 years. I would look at a proper income protection policy instead of accident and sickness every time.

PasPer2

Thanks Toonfish. Can you reccommend a "proper" income protection policy please. I assume these will be available over the net.

The ASU cover i was going to take was going to cost £3406 for 6 years cover !! All the interest would be going on the mortgage as well so a pay monthly/annually option would be more beneficial.

Alex

Leon_W

Oooo nasty. Lump sum ASU added to the mortgage is generally frowned upon by every other broker I know. Nothing wrong with ASU but there are plenty of companies that do it for a monthly premium.

Also, what would happen if you went self employed from an employed position ? You can't claim for unemployment if you're not employed so you would have bought a policy that didn't even cover you.

toonfish

PasPer2 wrote: »

Thanks Toonfish. Can you reccommend a "proper" income protection policy please. I assume these will be available over the net.

The ASU cover i was going to take was going to cost £3406 for 6 years cover !! All the interest would be going on the mortgage as well so a pay monthly/annually option would be more beneficial.

Alex

the best product is not the same for everyone - it's worth consulting an IFA because they all have different terms and conditions and premiums will depend on your employment status, income and current health generally. Unlike life cover, cheapest is not always best, in fact it rarely is so.

Rick62

I personally would never recommend a single policy ASU. And, I can't really say without knowing the full terms, but this policy seems very expensive. What is the monthly cover amount?

PasPer2

I am not sure about the level of cover as i have not been given any breakdown for the ASU. I have had the ASU removed from my mortgage though and will source one independantly from it.

I have borrowed some of the equity on the property to pay off other debts, one of them being a £10k loan which only started in december. The interest rate was an acceptable 6% but i have agreed to lump this in to the mortgage as well. Would i be wiser paying this for the loan term (5 years @ 6%) or lump it into the mortgage and pay off the loan & interest then pay £1.49 for every £1 borrowed over 10 years. My other debts (credit card & car finance) are at ridiculous interest rates so these are a no brainer for consolidation purposes.

Thanks for your help.

Alex