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  • FIRST POST
    • malli79
    • By malli79 5th Oct 17, 9:02 AM
    • 20Posts
    • 2Thanks
    malli79
    Is my calculation correct?
    • #1
    • 5th Oct 17, 9:02 AM
    Is my calculation correct? 5th Oct 17 at 9:02 AM
    Hi
    I am thinking of ditching my fix and would appreciate some help with my calculations as to whether it is worth it or not.
    Details are:
    Mortgage balance £117,000
    12 months remaining on my fix (or will be when I switch)
    Current interest rate 3.69%
    ERC c£1600 plus redemption fee which I'm guessing is £300
    Can switch to rate of 0.98% with a £699 fee
    Current payment £814 new payment £591
    So cash paid over the 12 months is around £100 less on the new deal but when I factor in the capital repaid I think overall I will be c£500 better off. D
    The complication is that I overpay and would continue to on the new rate, so with all details as above I would make monthly payments of £1015 in both cases. I think this would make me c£2900 better off. Am I correct?
    Many thanks for any help
Page 1
    • getmore4less
    • By getmore4less 5th Oct 17, 9:55 AM
    • 29,995 Posts
    • 17,927 Thanks
    getmore4less
    • #2
    • 5th Oct 17, 9:55 AM
    • #2
    • 5th Oct 17, 9:55 AM
    overpayments reduce the savings on a ditch the fix.

    in 12months
    £117,000 @ 3.69% £1015pm £109,003
    add al lthe fees £1600+£300+£699=2599
    £119599 @ 0.98% £1015pm £108,548

    £455 better off.

    break even is the total fees when added of less than £3056
    • malli79
    • By malli79 5th Oct 17, 11:05 AM
    • 20 Posts
    • 2 Thanks
    malli79
    • #3
    • 5th Oct 17, 11:05 AM
    • #3
    • 5th Oct 17, 11:05 AM
    Thanks. Think I'll wait until my fix expires and see what retention deals I am offered.
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