4.49% Fixed Till2010 But Want To Overpay But Cant... Change ?

LOTTIE271100

hi

My hubby and i have a small mortage (one of the lucky ones who brought 10 years ago) any way £85,000
£65,000 14 yrs left 4.49% fixed till 2010
£20,000 20 yrs left 5.95%.
Value of home £250,000 (realistic figure).

we can only over pay jan each year not sure but max 1% or 5%?? (not done yet )

in a position at mo to poss over pay each month £200 to £500 each month but cant , shall , can i change my mortage .... flexi mortage?........... intellegent mort? not really sure what they are ?
but by how much will this reduce our mort term?

help and advice needed please
thnak you

Welshlassie

You have reasonable low mortgage rates, so you're best bet would be to open a high interest saving account and put the extra you have into there, this can then be lumped off at the end of the fixed rates. Don't remortgage you have very good interest rates and you are unlikely to get as good a deal again. If you do decide you want to lump money off annually pay it off the £20k part first.

You're best bet on to work out how much this would reduce your term by you be to plug the figures into a OP calculator. I Like the Egg one.

Otherwise phone and ask the mortgage provider.

LilacPixie

I agree with welsh lassie.

You have good rates and are unlikley to get as good remortgaging at this time. You would probably also have to pay an early repayment charge to exit your current deal so it would make it even more unattractive an option.

ema_o

Have you used your ISA allowance?
If not then you should pay anything you have up to £600 per month into your ISAs - you should get a rate over 6% which will beat overpaying your mortgage especially the 4.49!
Then when you can renew your mortgage (2010?) you can review whether you get a better rate for mortgage or whether it is still worthwhile keeping it in ISAs.

If you have used your ISA allowance maybe look at a regular savings account or high interest ones as suggested above!

dimbo61

Contact your lender and ask can you reduce your term and keep the same deal.
I had to pay £50 to reduce my term from 25 to 22 years.
With the 4.49% deal it is much better to save into an ISA or high interest account rather than overpay so ask that any overpayments come off the £20k loan.
So cash ISA paying 6.25/6.5% first ,then high interest savings accounts paying 8% after TAX ,then overpay on the 5.95% part of the mortgage.

LOTTIE271100

Thank you all very much, we do not have ISA so we will look into them , as reg putting away nearly £500 now a month. and paying off the 20k first
thank you