Fixed Term Deal coming to an end - feeling lost!

masonsmum

Hi - I am hoping I might be able to gather some help on here as I am going round in circles trying to get any advice from my current mortgage provider - Nationwide.

Bear with me as I dont have a clue about mortgages.

Our current fixed term is coming to an end we have been paying a rate of 4.29% for the past 2 years (this deal was provided by an independent financial advisor). Now I contacted him again but my husband only went self employed in July last year so we will be unable to provide his accounts to go to a new lender.

So I called Nationwide when I received my mortgage statement yesterday as it clearly stated "your term is coming to an end give us a call and we can review a new fixed term deal blah blah"

So I called up and was told "we cant help you over the telephone you need to go into store or do it online"

So I called my local branch and surprise surprise they cant help me either, they cant give any information and she said something about "execution"

So finally I had a look online at the existing customer switching - put in all my details our house value is £75K and our oustanding mortgage is £60K so Loan to date Value (I think) was 80% and we have 20 years left on it.

So this worked out we could save approx £40 per month however I would rather pay the same and shorten the term so changed the years to 18 and the payment came in at £360 but when I went to click through the switching process it gave me loads of protection statements to click saying I hadnt received any advice and there was no comeback etc etc and the final screen showed this information:

2 year fixed
Initial Rate 2.19%
Subsequent Rate: 3.99%
Overall cost for comparison: 3.70%
Initial Monthly Payment: £308

There was no information clarifying the amount of years or additional monthly payment. So I was really wary and called up the branch again to be told they couldnt help me!

Why on earth are they called mortgage advisors if they cant advise! Feeling totally helpless

kingstreet

You get advice by sitting down with an authorised person and going through the regulated advice process, or you do it online and do it "execution only" where you take responsibility for your own actions.

Why reduce the term and be stuck with higher payments, like it or not? Why not stay with your current term and make voluntary overpayments and achieve the same thing, but with the flexibility to stop the overpayments for a month or two if you need to.

Then, all you are doing is a simple product transfer and you can't do much wrong with that...?