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  • FIRST POST
    • Snowy44
    • By Snowy44 8th Jan 18, 12:40 PM
    • 5Posts
    • 3Thanks
    Snowy44
    Can anyone help me with sums for ending a fixed mortgage deal early?
    • #1
    • 8th Jan 18, 12:40 PM
    Can anyone help me with sums for ending a fixed mortgage deal early? 8th Jan 18 at 12:40 PM
    Hello!

    I have 2 years left on my fixed deal. Currently at 3.01%. About £470 per month.

    Length of term left is 22years.
    Remaining loan £89500
    House value £123000
    ERC £2000

    I want to get a new 2year fix at 1.34% (+£999 fees) for 22years, loan to apply for £91500. Monthly repayment about £400 ( the idea would be to overpay £70 per month with no penalty).

    Or without fees 2year fix 1.74%, for £420 pm.

    Can someone help me with the sums to make sure this could be okay to do before I call the mortgage lender?
    Or, should I just ride it out?
    I feel if I was to do it the sooner the better.

    Many thanks!!
Page 1
    • Lucky Duck
    • By Lucky Duck 8th Jan 18, 12:55 PM
    • 152 Posts
    • 85 Thanks
    Lucky Duck
    • #2
    • 8th Jan 18, 12:55 PM
    • #2
    • 8th Jan 18, 12:55 PM
    Perhaps an oversimplification- but if you are saving £70 per month then over 24 months the saving will be less than the ERC without factoring the arrangement fees into the equation.
    • Snowy44
    • By Snowy44 8th Jan 18, 1:07 PM
    • 5 Posts
    • 3 Thanks
    Snowy44
    • #3
    • 8th Jan 18, 1:07 PM
    • #3
    • 8th Jan 18, 1:07 PM
    Looking at it that way, I would have only saved nearly £1700 over the 2years. That's a good point, thanks.

    My way of thinking is... if the interest rate is that much lower then more of my money will be going towards paying the mortgage and less on the interest.
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