New Mortgage deal required.

southantrim3

Hi guys.

My current mortgage deal runs out next month. The following are the details of my current mortgage:

O/s balance £26862 (Progressive Building Society.)
Current repayments are £258.00 at a rate of 3.25% (discounted SVR)
Repayments come next month £278.78 at rate of 4.75% (standard SVR)
10 years and 4 months to go - projected end date July 2020.

Any help would be greatly appreciated - thanks.
BTW - I'll also have a windfall of approx £14k coming in August/September so advice re that as well, do I take it off mortgage or put it into savings.

Cannon_Fodder

Your preference is SVR/tracker ? No new discount product offered ?

Small balance to be incurring fees on. Check your small print for ability to overpay. If it allows big chunks, keep the product and put say £10k into mortgage. Keep £4k in case rates shoot up, you need fees to move, emergency fund etc.

If not allowed big overpayments, consider moving, but pick a low fee product.

dimbo61

Usual questions
Do you have other savings IE emergency fund of 3/6 months of income?
If you sit on the SVR for a few months until you get the windfall of £14K you could use that to reduce your mortgage but carry on paying the same amount each month and reduce the term by years.
Now Progressive have on there website a 2 year fix at 3.99% 3 year fix at 4.39% and a 5 year fix at 5.39% which would works out at £233.48 per month over 5 years if you paid off £14K in August/september and had a balance of £12,000.
Dont know if there is a product fee with this mortgage ( do not pay any fees) or just stay on the SVR and overpay as much as you can afford GOOD LUCK

southantrim3

Thanks for the replies so far. I'll take either SVR or fixed, I don't mind in that respsect. I do have enough money in savings to keep me going for 5/6 months should anything happen.

I was wondering with regard to fees if it would be actually worth going for a new mortgage on a low o/s balance which is part of the reason for seeking advice. If I went back into a deal with the Progressive I would only be able to overpay 10% and if I payed anymore there would be a 2% penalty charge.

Hope this extra info helps :beer:
(Happy St Paddy's day to all.)

dimbo61

The 5 year fix for £12,000 is a 5 year term so you would be mortgage free in 5 years time after you have used your £14K windfall to clear a big part of the existing mortgage OR you could just go onto the SVR and overpay every spare penny over the next 2/3 years to become MF.