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5 year fixed ending, will my payments increase when I remortgage?!
johnhubbard
Posts: 2 Newbie
Hi guys,
i'm really confused!
My 25 year fixed mortgage is due to finish its first 5 year fixed period in February 2010, the current rate is 4.99% and the monthly repayment is £570, I owe £90,000.
I want to switch to the best rate available in February and I guess I should be able to get around 4.75% or less fixed for "x" number of years.
Using the BBC Mortgage Calculator (google it) and 20 years as the remaining term, £90,000 owed with the lower interest rate of £4.75% my payments go UP to £589
:o
If I managed to get the same interest rate i'm on now 4.99% my repayments would go UP to £601.30 - thats a massive increase a year for me.
When you remortgage is there a special calculator to use which takes into account you've already paid 5 years and doesn't treat the "term remaining" field like a new mortgage?
i'm really confused!
My 25 year fixed mortgage is due to finish its first 5 year fixed period in February 2010, the current rate is 4.99% and the monthly repayment is £570, I owe £90,000.
I want to switch to the best rate available in February and I guess I should be able to get around 4.75% or less fixed for "x" number of years.
Using the BBC Mortgage Calculator (google it) and 20 years as the remaining term, £90,000 owed with the lower interest rate of £4.75% my payments go UP to £589
:oIf I managed to get the same interest rate i'm on now 4.99% my repayments would go UP to £601.30 - thats a massive increase a year for me.
When you remortgage is there a special calculator to use which takes into account you've already paid 5 years and doesn't treat the "term remaining" field like a new mortgage?
0
Comments
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How much is your property worth? Who is your lender? What is your lenders standard variable rate (SVR)?johnhubbard wrote: »My 25 year fixed mortgage is due to finish its first 5 year fixed period in February 2010, the current rate is 4.99% and the monthly repayment is £570, I owe £90,000.
Take a look at www.moneyfacts.co.uk to check out current deals.I want to switch to the best rate available in February and I guess I should be able to get around 4.75% or less fixed for "x" number of years.
Where did you get your £90,000 balance from and at what point in time?Using the BBC Mortgage Calculator (google it) and 20 years as the remaining term, £90,000 owed with the lower interest rate of £4.75% my payments go UP to £589
Have you had any fees added to your mortgage at any stage? Are you in arrears? Have you ever been in arrears?
How much did you borrow originally?When you remortgage is there a special calculator to use which takes into account you've already paid 5 years and doesn't treat the "term remaining" field like a new mortgage?
Hopefully answers to the questions above will allow people to give you more helpful answers.
My guess is you borrowed around £97k and you have got £90k from an old mortgage statement. Debt at the end of year 5 should be around £86.5k.
Don't forget, it's not obligatory to remortgage. You have the choice to do absolutely nothing.0
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