mortgage advise

ravon

basically i have no idea what to do, currently with ulster bank, just comming off a 2 year fix rate which was 5.6%, there new rate will be 4.10%,and it was over 38 years.

What im thinking is if i phone up to renegociate i want to try and keep the repayments roughly the same as im paying now. Using the mortgage calculators its telling me i could pay the same but bring the overall term of the loan down to 26 years, is this right?

I dont mind setting up a new mortgage paying the arragement fees, if im going to get a better deal long term.

Gorgeous_George

Assuming that you borrowed £100K over 38 years your repayment would have been £530.10 at 5.6%.

After two years you would owe £98,393. Take this at 4.1%, keep paying the £530.10 and it would be cleared in 24 years and 7 months. The 26 years could come from adding arrangement fees of £2k ish.

But rates may rise in the future.

GG

Dan_1976

I am not jumping to conclusions, but did you borrow 100% from Ulster?

As clever clogs states over pay as if your on the higher rate, saving you time and money. Although rates can rise.

dimbo61

If you can afford to pay more each month and have a poor LTV ie 95/100% then overpay as much as you can and see if ulster bank can offer you a new long term fix of 3/5 years for security !!

Gorgeous_George

dimbo61 wrote: »

If you can afford to pay more each month and have a poor LTV ie 95/100% then overpay as much as you can and see if ulster bank can offer you a new long term fix of 3/5 years for security !!

I agree with the sentiment but 3/5 years is noT long term imho. I consider 2 to 3 years as short term, 5 as medium and 10+ as long.

GG