what would be the best idea?

jodie114

i currently have a mortgage with a&l for approx £60,000 and my house is worth approx £170-180,000.
I am in a fixed 5 year plan, with an apr of 6.5%, making payments £135 weekly.(i am paid weekly)
I have about 3 years to go in the term, but was wondering if it was worth trying to remortgage to improve the rate, but was concerned about early settlement charges, and new arrangement fees etc and wondered if it was worth it.
I have 19 years left, which takes me up to my 70th birthday, but i am planning to overpay once my loans finish in 2 years time. I also have a private pension that has a current lump sum of £25,000 due when i turn 60.
i cannot afford to pay much more weekly, so can this be done considering i have an extended term, i don't think i could afford the repayments if the term was shortened by 5 years at the moment.

getmore4less

jodie114 wrote: »

i currently have a mortgage with a&l for approx £60,000 and my house is worth approx £170-180,000.
I am in a fixed 5 year plan, with an apr of 6.5%, making payments £135 weekly.(i am paid weekly)
I have about 3 years to go in the term, but was wondering if it was worth trying to remortgage to improve the rate, but was concerned about early settlement charges, and new arrangement fees etc and wondered if it was worth it.
I have 19 years left, which takes me up to my 70th birthday, but i am planning to overpay once my loans finish in 2 years time. I also have a private pension that has a current lump sum of £25,000 due when i turn 60.
i cannot afford to pay much more weekly, so can this be done considering i have an extended term, i don't think i could afford the repayments if the term was shortened by 5 years at the moment.

This is a little confusing trying to summerise.

Mortgage
£60k 5year fix, 3years left 19y term(is that 19 left or less?)

6.5% £135pw

What are the early repayment charges?

Loans, how much what rates? terms?

Pension lumps sum £25k at 60 how old now?
What pension income will there be do you intend to continue to work?

OK working back.

£60k @ 6.5% £135pw is around £585pm that would make it 12.5 years left not 19y.

For 19years left that should be around £460pm

Are you paying any insurance(buildings or protection) with this?

Can you clarify the mortgage your numbers don't seem right?

jodie114

i was told 19 years when i phoned to clarify recently, but the weekly payments are certainly correct, does this include interest?
i am now 51, so the 19 years left would take me to 70 as i stated.

I pay no ppi etc on this, nor life ins with this policy.

i have 2 loans, one with liverpool victoria (now moneyway) for approx 6,000 left, over approx 3 years (£225 pm)I think it was 6.5%

The other is with first direct, with an apr of 6.7% that has 5 years left to run at £250pm. this one has not long been taken out, as it was consolidation after huge credit cards... although no defaults etc just getting stupid amounts of interest so i did this.

i hope to retire around the 65years it is at present, hence i fully intend to overpay in 3 years and then again in 5 as loans finish.

i am not sure about early repayment charges, a&l seemed quite secretive about them when i asked, so i will have to try someone else, see if i get a better response.

I will have a pension income of approx £7000, according to last years pension forecast, although with 9 years lef to go, this is obviously subject to change.

seriously, £15 a week makes that much difference? i can overpay by a bit, probably £20 a week but assumed that would make no real difference.

beecher2

Have a look at your mortgage key facts, or statements as they'll tell you how much the ERC will be.

Any overpayment is worth it - have a look at some online calculators to find out how much it'll take off

luckyfool

You could remortgage, reduce the term to finish at age 65, consolidate the loans, and get a much better 5 yr fixed rate (which would probably pay for the penalty).... whether this is worthwhile or doable will depend on the numbers though.