Some advice please, whether Abbey Flexible Plus or Loan.....

blue_monkey_2

Hi all,

I need some advice from you guys in the know if I may as I know nothing about morgages and need to help my mum with hers.

2 yeas ago she remortgaged - it meant she could finally get my dad off the deeds (as per the divorace arrangement but she never had the money to do so) and start over while borrowing some money for fixing the roof at the same time. The agreement for the 2 year special rate she got is almost up and then she will now go onto the Base Rate for paying her mortgage, she is with the Abbey and always has been.

She owes about £24k and the house is worth around 250k, at the moment she has, I believe, between 12 to 15 years left to pay off (I forget precisely). The time has come for her to call the Abbey again and sort out another agreement so that she is not on Base Rate which would mean her entering into another agreement. I hope that is right as I am explaining - basically her special rate is ending.

My question is this: She is paying, as of last year, around £600 off her mortgage a year, if she moves she will have to pay £250 to end it early (unless they have stopped this after that bloke on the news got hims money back) plus I believe around £700 to arrange a mortgage with someone else and that is 18 months worth of repayments that she will 'lose' just for moving it.

The Abbey have a new Flexible Plus mortgage that she has been sent a leaflet for. Is it worth switching to this as they say that it will stay in place for life and that she will get a guarenteed tracker rate (which is what she is on now).

The other option is that she gets a loan for 15 years as the rate on a loan will not change (will it?) an then if the mortgage rate rises she will not get the % rise and could be better off.

She does not have a great credit score but guessing if using the house as collateral then there is no problem with her borrowing the money, she does not earn much money and we pay all the morgage and her insurances so this does come down as being part of her income but she does not get extra from this, we pay the exact cost of this each month to her. She has a few part time jobs, the main one of which she gets no payslip for as 'evidence' as she works under minimum hours and does not have to pay Tax or NI, in her 2nd job she gets a payslip. I personally think Abbey added a few bits of this and that on to give her the money she needed but that is neither here nor there now as far as Abbey are concerned - another company might not give this 'allowance' to her and she might not get the morgage moved so it does seem more beneficial to stay with the Abbey ad just switch to his Flexible Plus or to have a look around to see if someone will lend her the money and get a loan with a low Interest Rate for 15 years and pay the Mortgage off with this.

Please can you advise on what the best option is for her as we live at the house and rent with her so I have not had to do this for myself. Please ask questions if you need to so we can go in the right direction but it needs to be sorted so I would like a bit of advice that is the best for her if I could please. Many thanks.

blue_monkey_2

Just wondered if anyone had any advice on this at all.

Thanks.