Advice needed please - is this a good deal?

Vicki_Y

Hi GuysCould any of you tell me if this is a reasonable offer of not please?My mortgage is with Yorkshire. I was on a fixed interest rate of 4.69% (monthly mortgage payment £770.83) which is coming to an end in October. From November they have offered me a stepped fixed rate of 5.99% until 28/2/09 (so £849.00 a month) and than 6.79% fixed until 28/2/2010. No fees charged.This is obviously quite a hefty jump in payments so before I sign up for it I wanted to make sure its a good offer.Is there anything else on the market that would be better (bearing in mind this offer is fees free)?Thanks in advance for any help/advice.Vicki Y

homer_j_3

the easiest way to see if you have got a good deal is to calculate what you will actually pay from 1st Nov 07 to 28/2/10 and then compare them to the cost of closing your account down on 31/10/07 and calculate the cost of transfering the mortgage across to another lender.

If there are no admin fees for swapping onto a diff product with ybs then you simply do 2 multiplication sums of your payments for each period of interest rates. 14 x 849 + 12 x ? =

if it costs you £200 to shut your mortgage down and you look for a deal with no fees and free legals etc (it may be worth looking at products with a fee but it depends on your mortgage size) and you can find a fixed rate which will cost less over the same period then that will tell you if you have a good deal.

I would always go and see a broker to see if they can beat it. If they can't what have you lost other than a few hours of your time?

Vicki_Y

Thanks for the advice Homer J. Think I'll go down the mortgage broker route. As you say, I have nothing to lose...