Moneybackmortgages mortgage find

kacy75

I need some advice. I have found a mortgage fixed for two years at 5.34% with no lender fees with Abbey. We were looking to overpay but have found better deals at present without this. I am concerned I am tied in for more than the two years but only because Im not up on mortgages. It says something about early repayment charges (which are very high) Can anyone advise on this mortgage please and also do Abbey do large income multiples? Thanks in advance Kacy (found it on moneybackmortgages)

homer_j_3

There is an 18 mth extended tie in with that product. That means you will be paying the standard variable rate for 18 months after your fixed rate has ended. If you come out before this point you will pay the early repayment charge.

Seriously, you would benefit from professional advice - money saving can be made by using a broker.

You need to consider what levels of overpayments you require as most lenders will give up to a certain % (10 usually)

kacy75

10. What happens if you do not want this mortgage any more?
Early Repayment Charges.
An early repayment charge applies if you want to repay the mortgage early. The charge is
calculated using a loan amount of £110,000.00 and is based on 40 days interest if the
mortgage is repaid before 02/03/2011.
In addition, a Mortgage Administration Fee of £225.00 and for 02/07/2009 a Clawback of
Homebuyer Solution of £1,200.00 are also payable. The current level of these fees are
£1,425.00.
Based on the original amount borrowed, a cash example of the early repayment charge that
could apply would be £2,068.73 if repaid before 02/03/2011.
Therefore the maximum charge you could pay would be £643.73 plus fees which are
currently £1,425.00.
The early repayment charge example shown above is based on the current variable interest
rate. Interest rates can go up or down and the actual charges you might have to pay may
vary from the examples given in this illustration



Is this the bit highlighted meaning im tied in?

Thanks

JoeK_3

You have two penalties:

1) During the 2 year fix and
2) Before 02/03/2011

If you repay the mortgage before this date you will have to pay £2,068.73 based on SVR being the same as today.

Yes, you are well and truly tied in until 02/03/2011

JoeK