Re-Morgage Advice

pjpern_2

I am looking to change my presently high mortgage fixed rate of 5.78% for something better but will incur a fee of £2800 for the priviledge!

Can anyone advise if there is something around where it is worth my while doing this? I presently have a mortgage of £71k on a valuation of £150k. No adverse history - employed with no other debts.

I would be very grateful if anyone can cast any light on this as I have watched everyone pay such small sums compared to my ginormous payment! I am nearly 58 now so would like it paid off by retirement age

getmore4less

when does the penalty period finish?

_Andy_

That really isn't a high rate.

f1-fan_2

What's your monthly payment now? How much can you afford?

As far as I can work out with the info supplied:

If you have a 71k loan which you want to pay off in 7 years, at 5.68% the monthly repayment is £1030 and you'll pay £15498 interest over the 7 years.

Subtracting the 2800 fee, you would need to get a new rate of 4.75% or less to break even: 71k for 7 years at 4.75% = £12698 interest paid. Monthly payment = £995

This doesn't take into account any fees incurred to set up new mortgage.

pjpern_2

I am half way through a 3 year fixed term so have about another 1.5 years to go. My present payments are £750. Maybe I should stick the term out then?

dimbo61

So how long has the term got left ? more than 7 years ?
Are you going to be pay a mortgage out of your pension ?
The COOP are doing a 5 year fix at 3.99% ( fee £999).
Can you afford to increase your mortgage payment in order to be mortgage free by 65
Does your existing deal allow overpayments, even 10% would help!

Thrugelmir

If you can afford the ERC, why not use this to pay down your existing mortgage quicker?