Hi all,
I'm new to this group and have basically popped in for some advice. I'm not much of a monies person, but the time has come to change my mortgage to get some additional capital for an extension (plans are already in). Currently I am on a interest only payment mortgage with Natwest (It's not that bad a deal actually!) but the fixed rate period is just coming to an end, so swapping now (They have offered me several new options) but really with the poor performances of endowments I want to remove that worry from myself.
Having looked at a few places, Charcol seem to have a good deal which is
2.99% until 30/9/04 then US month 3 Libor rate + 1.25% until 30/9/14 then UK
3 month LIBOR rate plus 1.25% onwards... Sum wise with the current LIBOR Rate (I have looked up quickly on the net to get an idea of the history etc.) this rate seems pretty low over all, peaking to about 6% 6 years ago. The repayments due to the lower rates are what appeal to me the most (well who wouldn't) but obviously there are higher penalty clauses, but I don't see this as a huge issue due to the savings.
Has anyone any experience of this? Am I missing something obvious? Are they good? Avoid? Any information / help is welcome, and I will be talking with Charcol again about this on Monday.
Thanks in advance
Mat