Headache trying to do calculations!...

devon123

Hi all,

I wonder if you can help....maths isn't my strong point!...

Situation:
Current mortgage: 5.79% fix ending end of April
House worth approx. 150k
Mortgage outstanding: 95k

A&L aren't offering much to me when my deal ends, so I'm considering a FirstDirect 2.49% above base/no set up fee/no exit fee for a while and overpaying as much as I can.

I currently have 28 years (!!) to run and want to reduce the term to 20 years or thereabouts.

Who knows what interest rates will do, but I'm hoping they will stay low for 18months or so so I can overpay. How can I work out at what point would a fixed rate be cheaper? e.g. if I took out a 4.5 3 year fix for example. I don't think I'm making much sense here, but I'm just not sure what to do!

thanks.

devon123

I wish I was close to retirement!!

It reverts to 4.99 SVR. One of the worst SVRs I think!

I currently pay £605 mortgage but overpay £350 on top of that each month so I can afford to get a shorter term.

I will ring A&L again and see what they offer this week!

VIGILANT22

SVR 4.24 or 4.99?
http://www.alliance-leicester.co.uk/mortgages/interest-rates.aspx

Joe_Bloggs

I deleted my post as I thought my response was weak and inappropriate. I repost it so that the thread makes sense.

What rate does your mortgage rate revert to if you did nothing ? This may be their SVR or it could be something different. You have to have to check so that you can compare deals.
The term of a mortgage is primarily down to your ability to make repayments. You could change to a one year term if you chose to. However if you are close to retirement then your term may be limited by your ability to pay or exist.
J_B.

PS cut and paste your posts to somewhere on your computer. This way you will not be disappointed by your posts being lost in the void between cyberspaces.