Going to see Charcol

Nickynoo1

Hi,
I'm going to see charcol tomorrow to see about any better deals for my morgage. I've been with Abbey for 7 years and all my tie in's have ended. Currently on tracker at 5.75% with 80K mortgage.

I've never been to see anyone indepent before, as I've just stayed with Abbey for ease and not a bad previous rate.

Is there anything I should prepare myself with, tricks they may use. Any particular questions I should ask?

Thanks for any help

Nickynoo

payless

They will get better deals than current- but watch out for fees - many places available without broker fees being charged.

Nickynoo1

Oh those fees!

Have re-read martin's article on getting advice and have also phoned London & Country (whatever there called) to get them on the case too.

I've also had a look around myself and found this with coventry building society. Capped at 4.99% until December 2006, then 0.69% above base rate no tie in after that period, £199 booking fee +£250 arrangement fee. Or Flexi @4.99 no tie in period, £199 book fee, £150 arrange fee.

It would be quite good if it didn't have all those fees. Lets see what the experts come back with. See if they can do better.

Nickynoo

payless

Don't like actually getting into actual products on this board

BUT

no tie in after that period

that product is 4.99% cap until 31.12.06,

penalties 2% of balance repaid until 31.12.07.

Now whilst that extra yr is is on tracker - I would still say that was really a "extended tie" product.

---
Also the terms you quote are for purchase business- on a remtg there's no arrangement fee - but you pay own legals ( they have a discounted scheme)

Nickynoo1

Yes i agree it is extended.

Someone, not charcol, has foun a 0.11 discount base, so 4.64%. No arrange fee, they will pay legal fee's and they refund valuation fee, no extended penalties. Seems ok to me.

What I don't understand is why they refund the valuation? Why don't the just pay for it in the first place?

Just a query

thanks

Nickynoo

Mortgageman

What I don't understand is why they refund the valuation?

It's a measure of commitment - they figure you are less likely to pull out if you have already stumped up some money for a valuation

...phoned London & Country... (whatever there called)

L&C'll do - could we help?

payless

Nicky-

if you want to post any more deatils I will advise if any potential pitfalls to that deal
from what you say I don't think it a marketwide product- I can see a number of 4.64% rates around, but not with all the features you mention.

Mortgageman

It's ours

http://www.lcplc.co.uk/pressrelease.asp?title=630

payless

From the limited info - it looks very competitive
-
The redemption penalty during first 2 yrs is higher than average (if that becomes an issue)

As with all deals check out things like
Daily or annual interest
Account closing fees
Ability to overpay

BUT depending on your ciurcumstances it may well be that the competitive rate / fees structure outweighs some/all of these points anyway

Mortgageman

Sorry for berevity - really busy today (been out of office)

Nickynoo1, your adviser will be able to answer Payless's questions (and any others you may have) For anyone else interested:

Daily or annual interest

Annual

Account closing fees

Lender is A&L, so their normal T's & C's - deed release is I believe £295

Ability to overpay

10% per annum

Nickynoo1

Thanks payless & Morgage man,

Yes it was L&C who got this for me, in under 24 hours!

I've pondered payless' questions and what they mean to me.

Overpayments - nice idea, I would like to think I would do it, nice to have the option BUT, I haven't done it for the last 7 years - too much c/c to pay off.

Annual interest. If I'm not making overpayment, does it make much difference?

Closing fee - Looks quite high. I take it this is only if I move mortgages. I thought Abbey were high, £175 i think.

The reasons for changing mortgages, 80K, was to reduce my monthly payments so that the spare cash goes towards c/c debt, to pay 6.5K off as soon as poss.

Many thanks for your help, It really is nice to know that people give advice for the good of others, and no other reason. Make a nice change from people shafting you to make money out of you.

many thanks

Nickynoo