Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MDL74
    • By MDL74 13th Jul 17, 4:46 PM
    • 68Posts
    • 5Thanks
    MDL74
    Ditch my 5 year fix for a 10 year?
    • #1
    • 13th Jul 17, 4:46 PM
    Ditch my 5 year fix for a 10 year? 13th Jul 17 at 4:46 PM
    I've about £175k remaining on my mortgage

    I'm currently in a 5 year fix at 2.79%, expiring end of 2018. ERC is 2% reducing to 1% on 1st Jan 2018

    I'm considering paying this to guarantee my payments for the next ten years - looking at 2.49% rate with FD.

    I'd also like to overpay and be mortgage free in ten years if possible

    Firstly is it worth me changing provider and paying the ERC?

    Secondly, approximately how much would i need to overpay to be mortgage free in say 10 years?

    I'm fairly risk averse and don't see these low rates remaining this low for many more years
Page 1
    • AnotherJoe
    • By AnotherJoe 13th Jul 17, 4:53 PM
    • 7,559 Posts
    • 8,161 Thanks
    AnotherJoe
    • #2
    • 13th Jul 17, 4:53 PM
    • #2
    • 13th Jul 17, 4:53 PM
    Are you a high rate taxpayer?
    • Boredatwrork
    • By Boredatwrork 13th Jul 17, 4:57 PM
    • 263 Posts
    • 417 Thanks
    Boredatwrork
    • #3
    • 13th Jul 17, 4:57 PM
    • #3
    • 13th Jul 17, 4:57 PM
    What is your LTV, how close are you to the next one?

    Obviously guaranteed payments are a good thing, but many people opt for short terms until they hit the 60/65% best deals.

    If you are making overpayments, also weigh in how much, if its 10% a year max allowance does that mean by year 6 you can only put in far less than you may want too, thus extending your term?

    Food for thought, also check out Yorkshire building society they can possibly beat your current deal (fee free). Good luck
    • getmore4less
    • By getmore4less 13th Jul 17, 5:02 PM
    • 30,197 Posts
    • 18,051 Thanks
    getmore4less
    • #4
    • 13th Jul 17, 5:02 PM
    • #4
    • 13th Jul 17, 5:02 PM
    £175k 10y @ 2.5% £1650pm
    • MDL74
    • By MDL74 13th Jul 17, 5:31 PM
    • 68 Posts
    • 5 Thanks
    MDL74
    • #5
    • 13th Jul 17, 5:31 PM
    • #5
    • 13th Jul 17, 5:31 PM
    Are you a high rate taxpayer?
    Originally posted by AnotherJoe
    No

    What is your LTV, how close are you to the next one?

    Obviously guaranteed payments are a good thing, but many people opt for short terms until they hit the 60/65% best deals.

    If you are making overpayments, also weigh in how much, if its 10% a year max allowance does that mean by year 6 you can only put in far less than you may want too, thus extending your term?

    Food for thought, also check out Yorkshire building society they can possibly beat your current deal (fee free). Good luck
    Originally posted by Boredatwrork
    It's less than 50% - will look at Yorkshire but still wondering whether to ditch my fix in favour of a longer term one or not

    Basically hedging against a medium term rate rise
    • Boredatwrork
    • By Boredatwrork 14th Jul 17, 9:46 AM
    • 263 Posts
    • 417 Thanks
    Boredatwrork
    • #6
    • 14th Jul 17, 9:46 AM
    • #6
    • 14th Jul 17, 9:46 AM
    Secondly, approximately how much would i need to overpay to be mortgage free in say 10 years?
    Theres good mortgage caluclators for this kind of stuff, I have a good android one thats free I think its on apple too, check it out: Karl's Motgage calculator
    • getmore4less
    • By getmore4less 14th Jul 17, 11:14 AM
    • 30,197 Posts
    • 18,051 Thanks
    getmore4less
    • #7
    • 14th Jul 17, 11:14 AM
    • #7
    • 14th Jul 17, 11:14 AM
    I've about £175k remaining on my mortgage

    I'm currently in a 5 year fix at 2.79%, expiring end of 2018. ERC is 2% reducing to 1% on 1st Jan 2018

    I'm considering paying this to guarantee my payments for the next ten years - looking at 2.49% rate with FD.

    I'd also like to overpay and be mortgage free in ten years if possible

    Firstly is it worth me changing provider and paying the ERC?

    Secondly, approximately how much would i need to overpay to be mortgage free in say 10 years?

    I'm fairly risk averse and don't see these low rates remaining this low for many more years
    Originally posted by MDL74

    lets do some numbers on top of the previous "it will be about £1650pm to pay off in 10 years"


    £175k 2% ERC £3500.

    17months till end of 18
    £175,000 @ 2.79% £1650pm £153,469
    £178,500 @ 2.49% £1650pm £156,381

    Still £2,900 behind if you switch

    wait till dec you have £168,755 and a 1% fee

    £168,755 @ 2.79% £1650pm £153,469
    £170,443 @ 2.49% £1650pm £154,708

    only around £1,250 behind now.

    don't forget this is just the ERC you may have other fees to add in.

    from those you can work out what short term rate rises you are trying to protect against.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

132Posts Today

1,436Users online

Martin's Twitter
  • I believe I can boldly go where no twitter poll has gone before https://t.co/HA0jC92gAK

  • OK I'm wilting to public pressure and there will be a star trek captain's poll at some point next week

  • I can get that. My order is 1. Picard 2. Janeway 3. Kirk. Too early to say where Lorca will end up (or would you? https://t.co/kawtCOe9RA

  • Follow Martin