What are your thoughts?????

kaykay_2

We are looking for a remortgage as we are back on svr &.39% and no longer have a tie in. A&L our current mortgage lender have offered us 2.05% discount for 2 years off the standard variable rate of £7.39%. With an arrangement fee of £499. We want to borrow approx 80% of the total. Is is worth trying again with L&C brokers before we sign the deal, they advised fixed rate staying with A&L. Its all very confusing to me!!! Please help!!

JoeK_3

Seems ok to me.

JoeK

homer_j_3

http://forums.moneysavingexpert.com/showthread.html?t=407343

I was looking at the A&L today - they had a 2 yr fixed at 5.74%. No product fee. 128800 on a repayment for 20 years = £906 roughly per month

If you were to go on 5.34 (discount) then you will have a repayment of £874 per month on a like for like basis.

That to me is a £32 per month saving on discount - if int rates do not change then there is a saving to be made over the 2 year period even with the arrangment fee. (32x24 = 768).

However if Interest rates increase by 0.25% which would potentially push your discount rate to 5.59% as many are predicting (I am not sure) then your £32 per month savings become £14 per month then the discount becomes less attractive. If interest rates decrease then you are potentially saving more and laughing.

As I said in the other post - you need to work out what you want.

HTH.

kaykay_2

Thanks for the advice - thought about nothing else for the last two days!!!! i'm gonna go for it!
KK

The_Bear_6

Wouldn't go for A&L in this circumstance. I can't put what I would recommend as no doubt I'd need all that gaffe in my signature. Needless to say the 295 deeds release fee that A&L charge is a joke and for a mortgage that size a higher rate with Nationwide is more attractive.

kaykay_2

Not sure waht you mean a higher rate???
I agree though the deed release fee IS a joke!!

The_Bear_6

Five
Point
Eight
Four

kaykay_2

Dont mean to sound stupid but how is this more beneficial???

homer_j_3

The_Bear wrote: »

Wouldn't go for A&L in this circumstance. I can't put what I would recommend as no doubt I'd need all that gaffe in my signature. Needless to say the 295 deeds release fee that A&L charge is a joke and for a mortgage that size a higher rate with Nationwide is more attractive.

You have confused someone with gaffe in his signature. How do you expect joe public to even decipher that lol?

The_Bear_6

I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

---

OK

A&L 5.74 fees free (essentially) = X + 295
Nat 5.84 fees free = Y + 90

therefore if Y is less than X + 205 then it is better. You dont go into your mortgage amounts so i can't cost it out.

Obviously this assumes remortgaging, which you will do.

kaykay_2

The_Bear wrote: »

I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

---

OK

A&L 5.74 fees free (essentially) = X + 295
Nat 5.84 fees free = Y + 90

therefore if Y is less than X + 205 then it is better. You dont go into your mortgage amounts so i can't cost it out.

Obviously this assumes remortgaging, which you will do.

But i am talking about a rate of 5.34% so its lower than Nat???? Isnt it.
Even more confused now!!