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  • FIRST POST
    • Cotta
    • By Cotta 4th Oct 17, 2:10 PM
    • 2,475Posts
    • 975Thanks
    Cotta
    Mortgage - Stick or Switch?
    • #1
    • 4th Oct 17, 2:10 PM
    Mortgage - Stick or Switch? 4th Oct 17 at 2:10 PM
    Hi All,

    I have around £66k left on my mortgage at a rate of 4.69%. The renewal is not until February of 2019 with an early resettlement charge of 5%. I recently spoke to my mortgage broker in passing when I met him by chance whom I feel gave me poor advice. He suggested I pay the resettlement charge and move mortgages due to the imminent interest rate rise.

    Do anyone else think this is good advice from the broker?
Page 1
    • getmore4less
    • By getmore4less 4th Oct 17, 2:24 PM
    • 29,994 Posts
    • 17,925 Thanks
    getmore4less
    • #2
    • 4th Oct 17, 2:24 PM
    • #2
    • 4th Oct 17, 2:24 PM
    Probably not a lot in it with 16month to go.

    Switching now could protect against rises if there are any.

    What's your full term and LTV?
    • Cotta
    • By Cotta 4th Oct 17, 3:07 PM
    • 2,475 Posts
    • 975 Thanks
    Cotta
    • #3
    • 4th Oct 17, 3:07 PM
    • #3
    • 4th Oct 17, 3:07 PM
    Probably not a lot in it with 16month to go.

    Switching now could protect against rises if there are any.

    What's your full term and LTV?
    Originally posted by getmore4less
    House valued around £90k.
    • Cotta
    • By Cotta 9th Oct 17, 3:27 PM
    • 2,475 Posts
    • 975 Thanks
    Cotta
    • #4
    • 9th Oct 17, 3:27 PM
    • #4
    • 9th Oct 17, 3:27 PM
    Any further information on this?
    • YHM
    • By YHM 9th Oct 17, 3:32 PM
    • 89 Posts
    • 29 Thanks
    YHM
    • #5
    • 9th Oct 17, 3:32 PM
    • #5
    • 9th Oct 17, 3:32 PM
    Hi Cotta

    If your ERC is 5% of original balance and that is fixed throughout your term, it is highly unlikely you will recover that if you were to break out of it. However, interest rates are a lot lower than they were formerly, and for a new 5 year rate, you would be looking around the 2% mark for a new rate at that LTV.

    Depends what is important to you? Paying the ERC and having long term stability or not paying the ERC and just riding it out until it falls off its fixed in 2019.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
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