| Product: |
General Comments |
| Date: |
02.07.01 (1666 review reads) |
| Rating: |
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Advantages: Gives you payout long term, Ensures mortgage is paid, Piece of mind
Disadvantages: loose what you have already paid (internest only)
Being a first time mortgage customer, never moving mortgage or house since our first.
I am discusted with the mortgage banks, just before Christmas we received a letter saying that it is foreseen that next year our endownment policy for our mortgage will be running at a deficit. Panicing we went down to our bank - the Abbey National and asked them what should we do, is it possible to swap to a repayment mortgage, they advised us that we would stand to loose a lot of money switching to a repayment mortgage and that we should either up our payments into the morgage or open an ISA and pay in £60-80 per month to cover the shortfall and that each year we could pay off a section of the mortgage. Nievely we did as they advised.
In May our friends saw an Independant Financial Adviser, they gave him our number. We met with him, and that meeting really openend our eyes. The only problem with him came a fee and he was most aggresive towards me when we decided not to use his services.
We made a list of what we wanted an dhow much we were paying out now. We had 18 years left ot pay out (from 25 years). We were in a penalty clause as we had 18 months left on a fixed rate. We wanted to be able to keep paying the endownment side of the Abbey National mortgage. we still only wanted it over the years left - 18. We found out the penalty cost and added it to the figure. We then phoned around 6 financial companies, from banks, building societies to small financial companies, from which I recognised their names, ideally we wanted a financial company where if there was any problems, there was a branch we could walk into.
We found a repayment mortgage with Barclays bank. The morgage was cheaper than we are paying now by £80.00 per month still over the 18 years left with no risk of endownment paying off. We can still keep our endownment with Abbey National so that in 18 years not only will we have paid off our mortgage but we will have a nice
pay out aswell.
It is wise to seek advise, but I wouldn't pay for this service as you can do it simply by yourself. Unfortunately we have lost the last 7 years of money but we decided it was better to cut our losses now rather than receive them later. There are many sites on the Internet that explain mortgages and some offer services for minimum amounts ie: £10.00 if your not confident in doint it yourself.
Good luck in your findings.
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