Dilemma regarding remortgagaing - several options

crowjane

Gambling I mean

crowjane

Anyway - need to work out a Statement of affairs now.. and work out what that means etc. still very new to the processes and termoinology here so thank you all for your input and advice - it is honestly much appreciated (even when I question it - I am just trying to get it straight in my head).

beecher2

crowjane wrote: »

Thank you Beecher - but if the rates look to be on the rise I can move again without redemption fees this time - I see your point of course. However we are able to pay the mortgage easily enough even if the rates rise, we are not over extended - it is our only debt - we are not gambleing with our ability to pay iyswim - merely trying not to pay more interest than we have too.

I can't see you getting a deal anywhere near 4.99% when you move again though. Five year fixes are higher than that at the moment.

If you're not overextended then I'd advise overpaying in order to avoid paying more interest than you have to. That's the simplest way of doing it.

beecher2

crowjane wrote: »

Anyway - need to work out a Statement of affairs now.. and work out what that means etc. still very new to the processes and termoinology here so thank you all for your input and advice - it is honestly much appreciated (even when I question it - I am just trying to get it straight in my head).

Don't worry about questioning everyone and everything - after all it is just our opinion, it is your decision!

deedee71

Don't have any advice on the mortgage scenario but I've used stoozing to get more benefit from my offset mortgage. Assuming your OH has a good credit history get a long 0% credit card and keep the cash you would normally pay off each month in your mortgage account.

It all adds up.

molassie

Hi all,

Any advise anyone could offer would be greatly appreciated.

We are currently on a fixed rate mortgage of 5.59% with santander. This runs until dec 2011.

We owe £72,300.00.......Currently we have 18.5 years left on the mortgage. If we were to pay the mortgage off including all charges we would have to pay £75,300.00.

However, we MAY be in a position to pay off a lump sum of £7000 which would bring our mortgage down to £68,000 (including paying the early repayment and associated costs).

Having read lots of the posts in this thread and the ditch the fix thread am confused as to what to do.

Ive looked into remortaging and it appears that if we continue to pay close to the monthly cost as it currently stands we could reduce the term of the mortgage by 5.5 years to 13 years!!!!!!!! The rate ive been looking at is 3.19% fixed for two years. It seems to good to be true.

Can anyone help? Not sure what to do. It seems a really good opportunity to be able to do this BUT concerned about changing.

Thanks

molassie

When I say pay the mortgage off......I mean if we were to remortgage the cost including all the charges would be £75,300!

dimbo61

Crowjane stick with your fix and save as much as possible in the offset account as this is the best way to build up emergency savings while also offsetting the mortgage interest.
There is no point paying a 2% fee to get out of a good fix with 3 years left and you have the offset facility

dimbo61

molassie
How are you going to pay £7000 off the mortgage ?
Check if santender allow overpayments and how much ( ie £500 a month /10% a year) do not pay any ERC,s

molassie

Thankyou Dimbo61,

We have been saving very hard in order to have a lump sum to pay off the mortgage. our mortgage allows us to pay 10% off the mortgage in a year without incurring any extra charges. Have spoken to Santandar and this is the case.

With this in mind, would a change be worth it. Like I said Im just concerned that it seems to good to be true. 5 and a half years off the mortgage is huge. By the end of the new deal Id ratrher have a mortgage for 11 years then 16 that we would have with our current deal.

My thinking is also IF the mortgage rate then goes back up by the time the deal ends having to increase the mortgage term in order to afford the mortgage wont take us back up to as high as would have to go with the deal we have......not explaining myself very well. At the end of the current deal we will have 16years left. If the mortgage rate goes up we would have to increase the amount of years we are paying over. likewise with the new deal we would also have to do the same BUT if we only had 11 years left on the mortgage the increase would take us up but nowhere near what it would be with the current deal.

Any advice?

Cheers