Mortgage Advice Needed

Hertismoi

We have a property valued at 130k and on that we have a current 20k mortgage at a fixed rate of 4.75 from the c+g, what we would like to do is add another 30k max for home improvments, credit cards etc.
the advice we need is who is the best out there at the moment and do we stick to fixed or tracker or etc etc.

Also is there a magic place where you can go and get all the money you need as a gift ;D

lisyloo

the advice we need is who is the best out there at the moment

You need to try some of the search engines
e.g.
https://www.moneysupermarket.com

The best deals change all the time.

Nationwide are currently doing a 2 year tracker at 4.79% with a fee of about £349 which is quite a good deal.

It would also be worth seeing what C&G will offer you because it will probably save you money on application fees, valuations, solicitors fees, deed realease fees and sealing charges etc if you stay with them (and be less hassle).

do we stick to fixed or tracker

Personally I would go for a tracker.
My view is that interest rates are not going to rise much futher and are probably going to fall in 2005.
Of course that's only a forecast, so there are no guarantees, but your mortgage is relatively small so the risk to you is small if rates rise.
You will probably find a tracker cheaper than a fixed rate over the next few years, but there are no guarantees with that.

payless

The lenders are hitching up the fees on the "free remtg packages" - some asking for £499 for more - watch out even £349 is perhaps a high fee on a £50k mortgage, ( albeit NatWide do have other benefits, so might just swing it at this level- but care at lower loan levels ) compared with a lender offering say no fee , but a slightly higher rate .

Yes ask C&G - although guess they will also charge.

Hertismoi

just found this, what do you guys think of it!!

Lender Skipton BS Direct
Product Name Stateside Tracker 5 Rem
Type of Mortgage LIBOR
Initial Rate 3.19%
APR 4.6%
True Cost Over 5 Years £14740.60
Monthly Repayments £244.01
Lender's Base Rate 6.0900%
Portable Yes
Incentives The lender will provide free valuation.
The lender will pay the your solicitors bill for next time buyers only.
Free Mortgage Indemnity Guarantee premium.
Free Accident, Sickness and Unemployment Insurance for 6 months.

Cashback £0 paid to you on completion.
Redemption Penalties 5% of outstanding loan before 31/10/2007, 4% of outstanding loan next 2 year, 3% of outstanding loan next 2 year

lisyloo

Risky, could end up being expensive, long tie-ins and high penalties.

I did some very quick analysis and over the past 10 years, you had a 20% chance of being better off on this mortgage and an 80% chance of being worse off (compared with a UK tracker).

This was by comparing the rates shown on the graph of US vs UK rates on Skiptons website.

Personally I wouldn't recommend it but my analysis has been very brief.

Do you know very much about US rates and the US economy?
Are you comfortable with being tied in to a US rate for a long time with high penalties?

martinhp

How much is the penalty you would have tp pay C&G to remortgage away from them? When does the fixed rate you are on finish?