The "Should I Ditch my Fix?" Calculator Discussion Area

MarkyMarkD

Very foolish indeed. If you cannot "port" the new mortgage when you soon move (and borrow the additional funds you then need), you'll be stuffed.

Stay where you are, and then get the bigger mortgage when you need it from a lender who will give you the money you require.

FUNKYDADDIO

Thanks MarkyMark, I can port my mortgage, does that make a big difference? thanks again...

noahs1

Hi Can anyone help - I am considering a fixed rate mortgage for the usual reasons (e.g. payment certainty and peace of mind).
My existing lender is offering a 5 year Fix at 2.95% but it has a hefty product fee of £2495. The 2 year fixed is 3.29% but without a product fee.

Is it worth gambling on interest rates remaining stable or is it better to pay the fee for security. If I opt for the five year fixed without a product fee, the rate is 3.69% and monthly repayments are £50 per month more so over the 5 years I would lose out by £600.

harvey115

noahs1 wrote: »

Hi Can anyone help - I am considering a fixed rate mortgage for the usual reasons (e.g. payment certainty and peace of mind).
My existing lender is offering a 5 year Fix at 2.95% but it has a hefty product fee of £2495. The 2 year fixed is 3.29% but without a product fee.

Is it worth gambling on interest rates remaining stable or is it better to pay the fee for security. If I opt for the five year fixed without a product fee, the rate is 3.69% and monthly repayments are £50 per month more so over the 5 years I would lose out by £600.

You have answered your own question.

- 5 years fix with fees is £600 better for you as compared to the 5 years no fees product.

You cannot compare the 5 year and 3 year products as the time scale are different and anything can happen in the 2 years gap.

In order to get a precise answer, you would need to provide the following details:

- Your current mortgage balance
- Years remaining
- Current rate
- LTV
- Interest rate you will revert to after your existing deal, if any

podgeylad

hi
any advice please
i have a 10 yr fixed mortgage at 6.1% that ends 5yrs 9 months aug 18 with an erc of £5091 reverts to standard .
i can change mortgage to 4.49% fixed till feb 17 then standard with no other fees
over 24 yrs still owing 95000
would i be saving?
thanks

podgeylad

Any advice on post above
Ta

Yorkie1

Suggest you start a new thread - this one is for discussion of a calculator, not for giving specific advice so some posters may not look on here.

flower14

I am currently sick and on benefits for that reason I was on a fixed rate however just prior to the drastic drop in interest rates I fixed for 10 years thinking that at least I would know where I stand.
After reading this forum and making a call to my current morgage provider and enquiring about changing my fixed rate to another fixed rate. I was astonished to think I could still save money.

I am currently on a rate of 6.09% paying £461.24 a month and have 68 months left. An early redemption fee would cost me £2827 which has to be paid upfront and cant be added to mortgage.

They have offered me a 5 year fix (62month) at a rate with no fees of 3.64% £385.63 which is a saving of £75.61 a month. If I compare the mortgage like for like over the 62 months then overall taking into account all my fees I will still save £1860 on what I would have paid over the same 62 month period.

It tells me that I should definately make that switch I wonder though if any other provider would have taken me on in my current situation being on benefits My LTV is 40.39% does anyone know if this is possible I have a top credit rating.