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Quick advice on new deal
cjalynch
Posts: 248 Forumite
Good Morning-
Our three year deal with Coventry comes to an end this month. For many reasons we are not in a good position to remortgage right now although this may change in 12-18 months time.
Interest only on £140,000 we have been paying 6.09%
They have offered us a new fixed rate of 6.49% until June 2011.
There is a 4% fee for early repayment.
Without taking the deal the new rate will be 7.34%
Spoke to our FSA and he is of the opinion that interest rates will either go down slightly or stagnate over the next couple of years.
While we can afford the payments at 7.34% if things went up even half a percent we would struggle and there is no doubt things would be easier at 6.49% on a monthly basis.
IF we sold in the next three years it would be to emigrate so we would have to pay the 4% fee.
Cannot decide whether to gamble on rates going down slightly or take the deal and shell out if we decide to leave (assuming there is no price crash and we cannot sell due to negative equity!!).
Any opinions??
Our three year deal with Coventry comes to an end this month. For many reasons we are not in a good position to remortgage right now although this may change in 12-18 months time.
Interest only on £140,000 we have been paying 6.09%
They have offered us a new fixed rate of 6.49% until June 2011.
There is a 4% fee for early repayment.
Without taking the deal the new rate will be 7.34%
Spoke to our FSA and he is of the opinion that interest rates will either go down slightly or stagnate over the next couple of years.
While we can afford the payments at 7.34% if things went up even half a percent we would struggle and there is no doubt things would be easier at 6.49% on a monthly basis.
IF we sold in the next three years it would be to emigrate so we would have to pay the 4% fee.
Cannot decide whether to gamble on rates going down slightly or take the deal and shell out if we decide to leave (assuming there is no price crash and we cannot sell due to negative equity!!).
Any opinions??
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Comments
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Have you asked the coventry about any other deals that they may be able to offer - maybe a 2 yr deal - either tracker or fixed?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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I took a capped rate mortgage out with the Cov last year. They might still do those.Hoping this year is better than the last.
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