Advice Please

michael19_2

Hi,

I am currently in a 3yr deal with First Active (RBS)

My mortgage term was reduced last time I remortgaged to 10 years. Its expected final payment date set for 2015. However due to moneysaving and budget planning I expect to have enough money to pay the mortgage balance off in Jan 2010.

So the advice I am looking for is should I bother applying for another deal or stick with RBS which I am sure is 0.75% above base rate after my current deal ends. I have a meeting with an IFA on Tuesday who I am sure will have suggestions but just wanted to see if any folk here had any or some ideas what questions I should be looking to ask.

Look forward to your responses and thanks in advance
Michael

17Dave

I would have to say that it depends on your balance.
A smaller balance would mean it is harder to justify admin and arrangement fees - against the BBR+0.75% which is not great but not terrible.

If you can get a good flexible low rate deal maybe you can reduce the term even further. Ensure your adviser understands your goals. As long as the adviser is whole of market for mortgages they should let you know the best deal for your circumstances.

PS good snigarute - I thought sllepnig was important!!
PPS Your avatar should have a health warning!!!

michael19_2

Hi

Thanks for your response the balance is around £46k. As I said the term reduction isnt a major factor as I will have enough to pay it off by Jan 2010 Im just worried that I wont be able to get a good deal for such a short amount of time without either paying a hefty arrangement fee or hefty redemption penalties at the end...?

Any more thoughts.

Cheers
Michael

herbiesjp

At that kind of mortgage level, you may well find it cheaper and easier to stay with RBS.

Find out if they have any other deals you can move on to without paying any fees.

YOu might be able to find other lenders with lifetime trackers, with no penalty fees, and limited setp up fees, but don't forget RBS will probably charge you a fee to leave. Will you make that up via the lower mortgage payments?

Personally, staying put sounds like a good option