Please share your views with the re-mortgage deal

edward_scissorhands

Please do advice as to which option is better, Thank you.

We have a mortgage with Woolwich and are completing the fixed rate period on 28th Feb 2013 and are moving to a 2.49 + bank of England rate= 2.99 % for the rest of our mortgage period (23 years). We got this mortgage rate through London and Country. They are offering us a new mortgage deal with Woolwich for 2 year fixed of 2.49% and then will move on to 3.39% +bank of England rate. There is no application fee. I will be able to make a saving of around £50/- per month for 2 years with the new mortgage deal, but after 2 years, the interest rate would increase to 3.89% minimum. I am not sure if this new deal will be beneficial for us in the long term.

Your views are greatly appreciated.

Kind Regards,
Ed.

dimbo61

Well Ed there are more questions than answers!
We have no idea about LTV or your income, debts, credit score, family , savings , age, pensions and long term plans.
Therefore we can't say that another lender has a better deal for you!!!!
What rate is the current fix you are on?
Will you be saving money by just dropping onto the follow on rate ?
Long term plans ? as no point taking a 5 year fix if you want to move in 2 years.
There is no rush. The BOE base has been 0.5% for nearly 4 years but I would ask for the mortgage payment to remain static as I guess you will then be overpaying a little each month