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Advice on finally taking plunge from fixed..
mowbray
Posts: 20 Forumite
Hi..appreciate some advice on this...
since getting divorced in 2006 I've had a couple of 2 year fixed rates, seeing that as being the only way to go, the current one runs out in March
The stats:
I currently pay £520 per month on a 4.99% fixed, 31 years left as it stands
I owe about £98500 on a property worth around £170000
My net pay in the previous calendar year was about £25,000, it's likely to be similar this year.
£20,000 in savings
No other loans etc
I've been looking at Trackers, Capped Trackers and just started looking at offset (although I really don't know much about these)...because of the divorce I ended up having to add a lot of years onto the mortgage in order to be able to buy out my ex, hence have paid off very little over the past 4 years, ideally I'd like this time to be able to take a 25 year term rather than leave at 31....at the moment obviously I'm a long way off thinking about paying it off, but I would like to make a bit of impact over the next few years, whilst not skinting myself in the meantime...maybe something that has reasonably low monthly payments (compared to what I pay now) with an option to overpay would suit me?
Any advice on what would be a good way to go would be great
Thanks
since getting divorced in 2006 I've had a couple of 2 year fixed rates, seeing that as being the only way to go, the current one runs out in March
The stats:
I currently pay £520 per month on a 4.99% fixed, 31 years left as it stands
I owe about £98500 on a property worth around £170000
My net pay in the previous calendar year was about £25,000, it's likely to be similar this year.
£20,000 in savings
No other loans etc
I've been looking at Trackers, Capped Trackers and just started looking at offset (although I really don't know much about these)...because of the divorce I ended up having to add a lot of years onto the mortgage in order to be able to buy out my ex, hence have paid off very little over the past 4 years, ideally I'd like this time to be able to take a 25 year term rather than leave at 31....at the moment obviously I'm a long way off thinking about paying it off, but I would like to make a bit of impact over the next few years, whilst not skinting myself in the meantime...maybe something that has reasonably low monthly payments (compared to what I pay now) with an option to overpay would suit me?
Any advice on what would be a good way to go would be great
Thanks
0
Comments
-
What is your current lenders SVR?
Are your savings earning a higher rate of interest than that on your mortgage?0 -
SVR...4.99% it's Alliance & Leicester, so nothing to gain I'm afraid, the savings are at a lower interest rate than the mortgage.0
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SVR...4.99% it's Alliance & Leicester, so nothing to gain I'm afraid, the savings are at a lower interest rate than the mortgage.
Possibly consider using a lump of your savings to shorten the term ? Why pay more than you are earning.
You've a good LTV. So should get a reasonable interest rate on remortgaging.
Here's a link that will get you started. http://www.fsa.gov.uk/tables/0 -
Have a look at First Direct offset mortgages
They have 2/3 year fixes at less than your current rate and you can offset the savings0
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