11 year fixed to halifax new 2.99 rate

handyman1970

I currently have 2 loans on my house;

30k at 4.99 fixed for 11 years
23k secured variable currently 4.24 for 17 years
total monthly 434

like the look of new halifax remortgage of 2.99 fixed for 2 years, going to take it over 25 years to give breathing space, payments of 262, giving me either money left over or money to overpay as current mortgage a bit tight money wise.

can I get advice if im doing the right thing, thanks you.

MarkyMarkD

Presumably there is a penalty on the current fixed rate, in which case it probably is not sensible to switch.

Perhaps if you advise how much the penalty is, we'll have more of a clue.

If, for example, it's 3% of balance then it probably IS worth paying £900 when you will be saving £600 a year on the fixed part of your mortgage. But it depends if you will then be able to re-fix at 4.99% or lower in two years' time - which is rather debatable.

handyman1970

Hi, I owe 52k , but with a 2000 early charge and 1350 to set up the new mortgae I will be then remortgaging 55350, but will I be saving much over the reduced 2.99 rate