Is it worth me changing my mortgage?

kerryi27

Hi,
wonder if anyone can advise me if I should get a new mortgage deal.

I remortgaged with Bank Of Ireland in June last year. The loan was 58,000 and fixed 3 years at 5.99% till 31 May 2011over 17 years and payments are £453.88 per month. The overall cost for comparison is 6.9% APR.

My early repayment fee is set at £1,740.00 to come out anytime before May 2011.

Is it worth me changing? I thought i would ask here first because a mortgage advisor will probably say yes so they can make money from the deal.

Any advice would be gratly appreciated.

m_13

Hello

What LTV do you have? Many of the good fixed rates are restricted to those with 60% LTV or lower.

If you were eligible for the HSBC 3.99% fix over five years (which does need 60% LTV or lower) then Karl Jeacle's mortgage calculator suggests that your monthly payments would drop to £392.01 which saves you £61.87 a month or £742.44 per year. It would take you just over 28 months to recoup the early repayment charge but you have 27 months of your tie left in.

If you were able to afford to overpay the HSBC mortgage each month then it allows for up to 20% of the monthly mortgage payments to be overpaid. On £392.01 this would be £78.40 so if you continued to pay £453.88 each month - an overpayment of £61.87 instead of saving it - then you would save £3,930.03 in interest you would have otherwise paid and your mortgage would finish 2 years and 11 months early in June 2022.

kerryi27

ooooh, thanks for that info. The overpayment is a really good idea. My house was valued at £110,000 by Bank Of|Ireland on 23rd April last year. So if it has dropped about £10,000 since then ( i havent a clue if thats right) then whatever i have paid off the 58000 loan plus exit fee.

I think i could be borderline. Would i have to pay a fee which i would lose if the LTV works out tiny bit more than 60%.

Any sites or calculators where i can fid how much the value of my house would have gone down.

Maybe I should ring them direct and see what they think?

kerryi27

Also, do you think it would be a good idea to ring Bank of Ireland and see if they can match it?

m_13

You could try Bank of Ireland but I notice they don't have any information on their rates on their website which is quite unusual.

You might want to look on www.houseprices.co.uk to see what similar properties in your area have sold for recently.