Only Me

maria_2

ANY GOOD ADVICE PLEASE?

I WOULD BE VERY GRATEFUL IF I COULD BE GIVEN SOME ADVICE .....
HAVING ALMOST COME TO THE END OF A FIXED RATE MORTGAGE WITH THE ALLIANCE AND LEICESTER I AM ABOUT TO SIGN UP WITH THEM AGAIN FOR A TWO YEAR DEAL AT A FIXED RATE OF 4.24%. HAVING LOOKED AROUND THIS SEEMS VERY GOOD - NO LEGALS ETC (ALBEIT AN ARRANGEMENT FEE OF JUST SHORT OF £300). THE EXISTING LOAN IS ON AN CAPITAL REPAYMENT BASIS. WHAT I AM WONDERING IS WHETHER IT WOULD BE A GOOD IDEA TO SWITCH TO INTEREST ONLY AND PUT THE DIFFERENTIAL BETWEEN PAYMENTS INTO A SAVINGS ACCOUNT - E.G. 7% DEAL FOR A YEAR WITH THE HALIFAX. or would it be a very bad idea???????? :j :j

dwsjarcmcd

Maria,
The product from A & L is an excellent one, I would go for that, no question, particularly as some lenders are pricing up. The Halifa account is a different story and I am not an expert on it but I think it has strings. You can only pay in monthly for a year (max 100 pounds) so it itsnt worth much towards the end then I think it transfers to another account. If you miss any payments, then you get a miserly rate on it and who knows what they will replace it with. You should check the terms and conditions to see if I'm right. Depending on your tax rate, it may not be worth it anyway. Hope this helps.

maria_2

Thanks - I will look into it before going any further!

whiteflag_3

Hi Maria

Just a thought -you might want to consider before taking the plunge with A & L

While i think the A&L rate is a good one, have you considered the effect of the arrangement fee on the overall cost , as it is just for a 2 year deal.

A & L will be back for another £300 who knows £500 in a couple of years which might make it more expensive than say paying £389 for a 5 or 10 year deal with the for example Nationwide (free legals)

over 10 years 1 x £389
or 4 x £299 = £1196



Crunch the numbers and see how they stack up

maria_2

Thanks For This - Something To Consider!