Should i stay (bmr) or should i fix now
egor110
Posts: 35 Forumite
As of 31st dec are mortgage was £32,008.11 and due to be paid in 6 years.
We've been overpaying and today i upped our payments to £700 and was told it should be paid in 3 years 11 months.
Is it worth coming off the nationwide 2.25% base rate and switching to there 2 year fix at 1.59% with no fees ?
Or just carry on with the base rate?
We've been overpaying and today i upped our payments to £700 and was told it should be paid in 3 years 11 months.
Is it worth coming off the nationwide 2.25% base rate and switching to there 2 year fix at 1.59% with no fees ?
Or just carry on with the base rate?
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Comments
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The 1.59% is going to work out cheaper, so why not?0
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As of 31st dec are mortgage was £32,008.11 and due to be paid in 6 years.
We've been overpaying and today i upped our payments to £700 and was told it should be paid in 3 years 11 months.
Is it worth coming off the nationwide 2.25% base rate and switching to there 2 year fix at 1.59% with no fees ?
Of course, unless you plan to move or separate within 2 years
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If you're on the BMR do you also benefit from other features such as the ability to borrow back overpayments? I am in a situation similar to yours and I have decided the borrowback makes it worthwhile for me to remain on the BMR.0
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£32,000 @ 2.25% paying £700pm paid off in 4years (3y11m would be £712pm)
(edit :OK is is 3,11 from now as the number are for Dec)
In 2 years time paying £700pm(if you can on the fix)
£32,000 @ 2.25% owe £16,304 interest £1104.
£32,000 @ 1.59% owe £15,975 interest £775
What happens at Y2.
check the lower limit on taking new retention deals
will there be a decent no fee 2y deal you could switch too.
with End of life mortgage situations the follow on can more important as the options become limited when there is no term left or the remaining debt is too small.0 -
getmore4less wrote: »£32,000 @ 2.25% paying £700pm paid off in 4years (3y11m would be £712pm)
(edit :OK is is 3,11 from now as the number are for Dec)
In 2 years time paying £700pm(if you can on the fix)
£32,000 @ 2.25% owe £16,304 interest £1104.
£32,000 @ 1.59% owe £15,975 interest £775
What happens at Y2.
check the lower limit on taking new retention deals
will there be a decent no fee 2y deal you could switch too.
with End of life mortgage situations the follow on can more important as the options become limited when there is no term left or the remaining debt is too small.
There is also a 3 year fix at 1.79%
Are you saying that fixing for 2 years is fine but year 3 i may be on a bad svr and unable to move due to the time left on the mortgage only being a year?0 -
If you have the benefits that TickyDicky101 suggests you have on the BMR then one option you will have is to not pay-off the mortgage at all at the end of the 3 years 11 months. You can get to say 3 years and 8 months overpaying then the next over payment amount you can use to reduce the monthly payment of the mortgage rather than the lifetime.
This would mean you would have a very low mortgage and monthly payment for the rest of the life of the mortgage and potential access to the overpayment reserve in case of emergency in the meantime.You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.0
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