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Beware of Fixed rate so called deals
broke_mum_of_three
Posts: 273 Forumite
Just had an interesting phone conversation with A&L whom I currently have my mortgage with. My fixed rate of 5.09% is up at the end of June and I have been panicking about getting a new one, they wouldn't even quote me until 1 May (8 weeks) beforehand. With each day passing it keeps going up, currently my payments are probably going to go up by about £50 per month.
Anyhow I speak to the mortgage advisor on a new fixed rate and the best one she could offer me was 6.94% increasing my payments by £76 per month.
I am thinking oh my nerves that is hectic! Then she tells me that when I come off my current deal I automatically go on to a base rate tracker plus 0.99% which works out currently at 5.99% and I have no fees or anything to pay. The mortgage only goes up by £37 and I dont have to do anything.
So just beware anyone panicking about a new fixed rate sometimes there are better alternatives.:j
Anyhow I speak to the mortgage advisor on a new fixed rate and the best one she could offer me was 6.94% increasing my payments by £76 per month.
I am thinking oh my nerves that is hectic! Then she tells me that when I come off my current deal I automatically go on to a base rate tracker plus 0.99% which works out currently at 5.99% and I have no fees or anything to pay. The mortgage only goes up by £37 and I dont have to do anything.
So just beware anyone panicking about a new fixed rate sometimes there are better alternatives.:j
Live on a little over £4k challenge
Sealed pot challenge no. 315
Sealed pot challenge no. 315
0
Comments
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Good point. People need to know what their current deal is.
Two years ago, BR+0.99% wasn't attractive. Today, it ain't bad at all.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0
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