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  • FIRST POST
    • Pike25lb
    • By Pike25lb 11th Jul 17, 6:06 PM
    • 4Posts
    • 1Thanks
    Pike25lb
    Switch morgage but interest rates
    • #1
    • 11th Jul 17, 6:06 PM
    Switch morgage but interest rates 11th Jul 17 at 6:06 PM
    Hi first time here posting Iv got a morgage letter statement any way so over 6 years we've paid 16k and only something like 6k has come of the morgage so we with halifax standard rate and have 14 years left we have been looking about for a ltv morgage for 30,000 over 7 years fixed for 5 year we can up our payments per month there is some morgages out there 1.79% HSBC and some others they have a fee of 750 to 1000 if we stay with halifax they can offer us a 5 year fixed for 2.39% and no fees question is do we move or stay any help please thanks
Page 1
    • Thrugelmir
    • By Thrugelmir 11th Jul 17, 6:33 PM
    • 55,895 Posts
    • 49,266 Thanks
    Thrugelmir
    • #2
    • 11th Jul 17, 6:33 PM
    • #2
    • 11th Jul 17, 6:33 PM
    Is £30,000 the amount you owe?
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • Pike25lb
    • By Pike25lb 11th Jul 17, 6:39 PM
    • 4 Posts
    • 1 Thanks
    Pike25lb
    • #3
    • 11th Jul 17, 6:39 PM
    • #3
    • 11th Jul 17, 6:39 PM
    Yes sorry we owe 30,000
    • Thrugelmir
    • By Thrugelmir 11th Jul 17, 7:13 PM
    • 55,895 Posts
    • 49,266 Thanks
    Thrugelmir
    • #4
    • 11th Jul 17, 7:13 PM
    • #4
    • 11th Jul 17, 7:13 PM
    If your remortgage to another lender besides the product fee. You need to factor in legal, valuation and existing mortgage ext fees. With such a small mortgage balance owing. The 2.39% on the 5 year fix does look attractive. Nothing to stop you overpaying so that you clear the balance just after the fixed period ends. Or in fact pay a lump sum off prior to taking up the fix.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • Pike25lb
    • By Pike25lb 11th Jul 17, 8:09 PM
    • 4 Posts
    • 1 Thanks
    Pike25lb
    • #5
    • 11th Jul 17, 8:09 PM
    • #5
    • 11th Jul 17, 8:09 PM
    I don't have any morgage exit fees spoke to them and because we own nearly 70% of the house one lender did say there would not be any valuation fees just the set up fee of around 800 so suppose speak that over the 5 year how do you work the difference from a 1.7% morgage to a 2.39% over the 5 years do you know the maths for that lol
    • getmore4less
    • By getmore4less 12th Jul 17, 12:13 AM
    • 30,302 Posts
    • 18,117 Thanks
    getmore4less
    • #6
    • 12th Jul 17, 12:13 AM
    • #6
    • 12th Jul 17, 12:13 AM
    EDIT CORRECT NUMBERS and the rate to 1.79%

    £30k is interest only

    £30,000 * ( 0.0239 - 0.0179) * 5 = £900

    £30k paid off over 5 years difference in interest is £1,858 - £1,314 = £473

    £30k over 7 years paying same on both rates £388, difference left after 5 years £9102 - £8472 = £630
    Last edited by getmore4less; 12-07-2017 at 6:32 AM.
    • Pike25lb
    • By Pike25lb 12th Jul 17, 4:49 AM
    • 4 Posts
    • 1 Thanks
    Pike25lb
    • #7
    • 12th Jul 17, 4:49 AM
    • #7
    • 12th Jul 17, 4:49 AM
    So is it better to stay with 2.39 % and no fees or move to 1.8 % and 800 ish fees thanks
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