Confussed

Flower_Fairy_3

I have messed up my mortgage in the past and now need so straight forward advice.

Brought a flat 7 years ago, I was 20, didn't know what I was doing. Advised to take out a 7 year fixed at 7.9% :eek: with the Abbey and an endowment plan.

Moved 4 years later taking very high mortgage with me and topping up to buy house.

1 year later boyfriend moves in.

year later decide to move upping mortgage again.

Anyway 7 years have passed and now I can move my mortgage.

It is £118,000 but I don't know what is the best option for us, I would just like the cheapest really and the best deal after being ripped off. It is also a very high mortgage for our salary but we have £100,000 equity in the house and no debt.

I have been to a mortgage advisor and he keeps saying the Nationwide, fee £389 + £95 becasue the redemption penalty is low. The A&L have the same deal, no fee and free legal etc and £250 cash back but the repemption penalty is high. We are only fising for 2 years max is it worth taking the risk of the high redemption?

I really don't understand all of this please help.

Hope this makes sense to someone!

Scott

If you plan to move, or see yourself being forced to move (jobs, family, whatever) in the next two years, go with the lower redemption penalty (Nationwide).

If you're secure and will be staying where you are, then I'd go with the A&L, as there is no need in allowing for something you have decided not to use.

But you have to be sure you won't be needing to pay the mortgage off. Possibly look into if it is portable or not (meaning can you transfer the rate over onto a new property if you did have to move).