C&G Switch

Ribbons473

We have a mortgage which we took out on an Interest only basis in 2007 with C&G, we have been on their SVR of 2% above base for the last few years and have been looking at switching to a new deal.


My main concern is when we originally took out the mortgage the sale of our property or a large inheritance I am due were accepted as repayment vehicles and whilst I fully understand things have largely changed for Interest only how would this be viewed now for switching to a new deal.


I have read as we require no further borrowing and have never missed a payment we wouldn't be asked to provide proof of repayment??


My other concern is would our new mortgage still be with C&G or would we have to switch to LLoyds?


We have a £300k mortgage on a house currently worth iro £500k.


Any advice would be gratefully received!


Many thanks.

Thrugelmir

Why do you want to switch to a new deal?

At the current time you'd be better off overpaying the mortgage to reduce the debt.

Once you come off the 2% SVR rate you'll be lucky to ever obtain it again. So will be fully exposed to the winds of higher interest rates. An uncomfortable place to be with £300k of debt.

Ribbons473

Interest rate hikes are whats prompting me to look at switching to fixed, every quarter percent rise would increase our payments by £60 assuming the rates go up even just once in the next 2 years we would be better off fixing??


Or am I barking up the wrong tree?? Trying to secure ourselves as overpayments not an option since I was made redundant.

Thrugelmir

Your situation does put a slightly different complexion on matters.

Is your mortgage now with Lloyds or TSB? You would need to call them or contact them online to ascertain what retention products are on offer to you.

I made the observation about overpaying rather than switching as it's highly likely that any fixed rate deal will be higher than you are paying anyway.

If you are concerned about a .25% rise. Then consider the longer term as well. As a 3% interest rise equates to £9k per annum or £750 per month.

Personally I would anyway possible to reduce the debt owed. Before a tsunami hits.

Ribbons473

We are with C&G but understand new deals are with LLoyds TSB? I am going to see them Monday but thought I would give myself a little knowledge before!


Their current 2 year fix is 2.54% so no difference, we could afford a .25% rise but are just concerned as to how high things will go as a 3% rise leading to us paying around 5.5% would equate to over £700 a month extra we would need to find ?


So just thought a fix might be the best way then once I have found another job begin overpayments where possible.

Yorkie1

They definitely can't be with Lloyds TSB as the two banks split a few months ago. Hence the question about which of them you'd go to.

Good luck on Monday.