1 house, 2 mortgages, 1 tied-in for a year. Remortgage now or wait?

Jackdaw_2

Very new to all this!!!

I have two repayment mortgages from the same lender (Furness BS) on my house, one of which will incur early repayment charges until May 2007. Should I wait until then before considering a single remortgage to replace both these?

Details as follows:

Mortgage 1: £38000 @ 5.89% (£90 discharge fee)

Mortgage 2: £47000 @ 6.39% (£1250 early repayment charge till 05/07)

(Interest rates quoted are from September 05 - erm, not sure if they're still correct!)

The house is currently valued at more than twice the total outstanding loans.

Also, are any savings likely to be worthwhile at this level of outstanding mortgage?

Many thanks!

Ian_W

Hi Jackdaw & welcome,
Those are quite high rates unless you've had some credit history probs in the past. The best rates ATM are around 4.5% but in the 12 months you'd only save around £1300 if my calcs working correctly which covers your erc's but you'd probably have some arr fees with the new lender which would make you out of pocket.
Might be worth checking with furness see if they can offer anything better for the unfixed part or maybe a further fixed for both. Don't fix the unfixed past may 07 though or you'll have the same prob again.
There are some brokers post on here who might see a way to do it now so keeping checking back.
HTH.

Jackdaw_2

Thanks Ian - Very helpful confirmation of what I suspected would be the case.