To remortgage or not to remortgage?

mrs.b_6

I wonder if anyone can help, using plain and simple language (as I am a plain and simple person!).

I currently have a repayment mortgage with Bank of Ireland. My last statement showed that I had £96768 outstanding (incl. a £4595.05 early repayment charge and a £195 mortgage release fee).

My monthly repayment is £775.17 and the maturity date is 25/07/2025.

The interest charged on this mortgage is 6.15% (I took this deal out just prior to the interest rates taking a dive).

I can't find a simple answer to this, but would it be cheaper for me to change my mortgage even with the early repayment charge.

Before I seek any financial advise I just wanted to know if it was worthwhile considering or not.

Thanks.

herbiesjp

What term is left on the mortgage?

Is this a residential mortgage or BTL?

Repayment or Interest Only?

mrs.b_6

The mortgage is on a residential property and is on a repayment basis, there are 180 months left to pay.

herbiesjp

And when is the current fixed rate due to expire?

mrs.b_6

The early repayment charge ceases on 31/05/2013. Thanks for your interest.

herbiesjp

One of the problems of answering here whilst answering phones is that you forget to ask all the questions up front! lol

Sorry for the list of question - but what is the property value?

mrs.b_6

Sorry, I should have posted all this information at the start.

The property value, as a guestimate is in the range £135000 to £150000. My husband and I are both employed (me part time, he full time). Our combined
income is about £60,000 per anum. We do not have any savings. We do have manageable debts with no adverse credit, everything is up to date and on time.

Thanks.

herbiesjp

Using this websites calculator here it says the following:

On a £96768 mortgage, currently at 6.15%, with a £4595 early repayment charge
You'd need a new mortgage that's consistently below 4.36% to save

Warning! This is a rough calculation. Always do the full sums (a mortgage broker can help). Plus if the new deal charges an 'arrangement fee', you'll need to find an even cheaper mortgage to make ditching your fixed rate worth it.

With an arrangement fee of £500, you’d need a new mortgage at 4.2% or lower to save
With an arrangement fee of £1000, you’d need a new mortgage at 4.03% or lower to save
With an arrangement fee of £1500, you’d need a new mortgage at 3.87% or lower to save