quick question re rates

noynoy

ok i havemortage with abbey which has 14 years 8months to pay about £55k ..now we renew in nov 11 ..the rate we are on is 5.99% and the rates now 3.84% are do we just go and renew at the lower rate now ..does the early repayment charge of £2407 apply as we are not paying off the full amount just renewing? any help very gratefully recieved hoping this will save us a few grand..and knock a few years off the mor:D tage!
for 2 year fixed
3.84%
£995 booking fee
40% minium deposit

Lynn11

My understanding is that you are maybe in a fixed deal until Nov so you will have to pay a fee to exit this deal and go onto another deal with the same lender. I would find out from your lender but I think this is the case so you may not save any money after paying out the ERC fee and the arrangement fee.

dimbo61

Paying what is in effect a 4% ERC fee and another 2% ( £ 995 ! ) to take another product at 3.84% for a shorter term than you are on is not a good idea at all.
If you have £2407 plus £995 plus any other costs with moving lender then overpay ( if allowed ) as its saving you 5.99% TAX FREE

noynoy

thanks you you have saved me a trip to the bank...hopefully when we renew it will stll be lower!