Advice for In Laws please..........

squibbs25

Looking for info on behalf of my Mother-in-Law please.

Her current mortgage deal is due to expire next week and because she only has a small mortgage of approx £15,000 left over 3 years, no one is interested in remortgaging as the 3 years will take them to retirement age.
Current payment is £420 pm new payment will be £544pm :eek: .

Current lender has offered a better rate but with fee's of £995, which works out more expensive in the long run.

Any ideas

Thanks for reading.

Squibbs

minimike2

Probably best to stay on the SVR, no point in remortgaging that amount with that term left.

(Because of fees)

*edit*

Hmm, taken a quick look.....are you sure thats what the payments are going up to? It doesnt look right to me....It would mean an interest rate of about 14.5%.....

bermondse1

According to Moneysupermarket.com, you can get personal loans with cheaper repayments than £544 for £15,000 over 3 years!

squibbs25

Hi minimike2, thats the conclusion we have come up with, but just wanted to see if anyone thought any thing different.

Squibbs

squibbs25

bermondse1 wrote: »

According to Moneysupermarket.com, you can get personal loans with cheaper repayments than £544 for £15,000 over 3 years!

gonna take a look now, thanks for that.

beecher

I don't get those figures. You'd have to be paying a rate of nearly 20% to be paying back £544 for a £15,000 mortgage over 3 years. Every 1% change should only add about £7/month to the payment so going onto the SVR shouldn't make that big a difference.

squibbs25

Even i think that is a huge jump, i'm waiting for her to re confirm the figures.
(those are the ones she's just given me).
She was on fixed rate with Chelsea building society now due to go to SVR

beecher

squibbs25 wrote: »

Even i think that is a huge jump, i'm waiting for her to re confirm the figures.
(those are the ones she's just given me).
She was on fixed rate with Chelsea building society now due to go to SVR

They can't be the correct ones - according to their website the SVR is 7.24% so their payments would be £464

squibbs25

She's just spoken to CBS the new payment is actually £495 pm (not the £544 she first thought) @ 7.49 with 3 yrs 3 months left

minimike2

That still seems too high to me. The o/s balance must be more than £15k straight...that payment looks about £15 too high to me.

Still, there arent too many other options. Nationwide usaully offer some decent deals with no fees to pay, just depends if they would be happy re the retirement issue. Might be worth a call.

squibbs25

Sorry about the confusion with the figures before (i'm sure Mother in law was having some kind of senile/blonde moment!)

Anyway.........
She has an isa with £1k in, she is going to pay that on the mortgage, the c.b.s advisor has told her the payment will drop from £495 to £466 if she does.
Advisor has also said SVR to drop next month. (if that makes any difference)