Remortgage & ditch my fix?

SHEILA54

Hi

I took out a cashback mortgage for £86000 with the Chelsea Building Society 2 years ago for a 10 year period, fixed for 5 years @ 6.49%.
It was high interest but the 6% cashback compensated for this. Payments are £960.07 per month.

Value of house is approximately £390,000 at present.

I have made 25 payments and the redemption penalty is now 3%.

Please can anyone tell me if there is a cheaper option out there, preferably fixed, and it would be nice to add an extra £3000 to pay off my credit card balance?

I would need to include the costs and redemption penalty into the new mortgage and may be able to make an overpayment each month in 2 years time when I get my state pension.

I will not be able to take out the company's household insurance as there was subsidence on the house in 1990 and no other insurance company will touch me: believe me I have tried!

Thanks

adandem

Do you have to pay back the cashback amount too?

SHEILA54

No, thanks for asking

adandem

I found this tool helpful for working out whether we should ditch our fix:
http://www.guardian.co.uk/money/mortgage-calculator

If you add your CC balance (but look into this), I think you'll need to borrow around £91,500?

SHEILA54

No, because I have paid back 25 payments already

adandem

Oh, well if you contact Chelsea, they'll give you a balance.

adandem

Just a thought, it will depend how long you're tied into your deal with the Chelsea for. If it's 5 years, you'll need to make savings of around £2500 (over 3 years) to make it worth your while.

SHEILA54

I owe around £72500 but will probably make another payment before the deal goes through, so maybe £72000. I guess that the repayment would be £2160 + exit fees.

Therefore I would probably need a mortgage of £78000 to cover everything.

I looked on moneysupermarket.com and the Woolwich seemed the best deal?

Thanks