Looking to remortgage...

LizUK

Hello
Would really appricate any advice...

I am looking to remortgage as my fixed deal with alliance and leicester has now ended.

The figures: I want to borrow 90k over 20 yrs. Would prefer a 2 year fixed rate so I know my payments for next 2 years. The house is worth about 240k. Its a single application.

I am a first direct customer and have looked at their offset mortage (4.95% or 5.25%) but would they be any good for me as I only have 1k savings and my total income each month is about 2k but I only save about £400 from my monthly income?

Should I look at an alliance and leicester deal as thats where my mortgage is now?

Can anyone please advise a good deal for me as I have sat here at computer all day and tied myself up in knots!!!!

I need some simple advice as mortgages are just so complicated!!!!

Thanks in advance, liz

_Andy_

With the First Direct mortgage, you don't have to use the offset facility, i.e. you can use it just a 'normal' mortgage. Grab the rate while you can.

LizUK

Hi Andy

Thanks so much for your quick reply!

Out of the 2 first direct deals, which one do you think would be best? One has an arrangement fee, one doesnt.
I am only looking to take the 2 year fixed rate. After this time can I move the mortgage without any redemption fees?

I am waiting for a first direct person to get back to me to discuss further but it wont be until the next 10 days.
Thanks again, liz

_Andy_

Hi
You're welcome.
I calculate that you'd be better off going for the 5.25 as the overall cost over two years would be less.

And yes you can move the mortgage after two years without being charged.

Cheers