A&L Mortgage question?

cheghead

My 3.49% fixed rate ends on 31/8. Only owe just under 25k. when i called them to see what they could offer after that date I was told the only product they could offer me was the 5.5% (boe base rate+0.75 tracker) for the remaining term of 8 years. Is it worth looking for a better deal bearing in mind the low amount and £290 exit fee?

Any advise appreciated!

MarkyMarkD

The advice was correct. Most lenders (including A&L) will only let you have special products if you borrow more than £25k.

In fact, I think you are lucky to have been offered BBR+0.75% rather than just SVR which would be 6.84% with A&L.

Small suggestion. If you take a further loan for £1,000 (say) so that you owe >£25k, you could then switch to any product you like: but you'd have to pay a further advance fee and then a product switch/application fee. On a £25k loan, it wouldn't work out cheaper than just paying 5.5% in the short term but might over the 8 years.

cheghead

It seemed like a 'fair deal' to me. Hopefully the interest rate will drop next week?