remortgage onto better deal

ads910

right so in july i purchased my first house, it was 150k we had 15k deposit leaving 135k mortgaged.

the house we brought was a reposetion and an absolute reck, we have renovated everything. therfore we got it at a very good price.

we have had 3 estate agents round valuing it at 190k, 190k and 195k. since buying ours i have seen the same houses advertised at the above prices and they are selling.

now im wondering whether it would make sense to remortgage onto a better product, we are currently fixed at 5.9 for 5 years, well a little over 4 years left.

im guessing my mortgage lender will come out an value the property for themselves, i doubt it will be as optimistic as the estate agents, but im sure it will be in excess of 180k would it make sense for me to remortgage, i think the penalty in the first year is 5% of remaining balance. appox 7k

CLAPTON

what do you consider a better deal?
to compare like for like you would need to get a 4 year deal at 4.9% to break even on the early settlement fee assuming no other fees or charges for the re-mortgage

_Andy_

I'd stick with it - you have a reasonable rate - would you be happy to increase your debt by at least £7,000 just to have a small monthly saving?

ads910

well from what i have seen valued at 180k outstanding of 135k i should be able to get rates of 3.5% ???

sammyjammy

Not on a 4yr fix you won't.