Small Remortgage Fix Ends 31/07/11

swanny65

We are on a 5 year Britannia, now Co-Op, fixed rate mortgage that is due to end on 31/07/2011. That we have been fortunate enough to overpay for most of the loan period. The facts about the current loan.

Original Loan £57000.00
Interest rate 5.04%
Required payment £605.69 pcm
Our Payment £800.00 pcm
SVR 4.24%

I have spoken with a very helpful lady at the Co-Op today and been advised they will consider us for a new deal from 31/03/11. If this were to be applied today I would be offered a 3 year fix at 4.39 (no arrangement fee). I also established the following facts

Loan outstanding £29874.32
Early Repayment Charges £458.00

What concerns us most is that if we want to re-mortgage in July 2011 with someone else they may decline us on the small amount required or the short period of the loan less than 3 years?

I estimate we could probably clear the mortgage in 3 years, from now, if we were to re-mortgage today but if that were the best option then we would prefer to have a 4 year loan and overpay as the additional payments come from my part time self employment.

So should we re-mortgage now or should we hold on and take the best offer available next year.

Thanks

dimbo61

To repay the rest of the outstanding mortgage £29874 over 3 years at 4.39% would cost you about £887 a month.
Now to move to a new lender and pay ERC of £458 and an exit fee ? plus other costs to remortgage elsewhere would I feel not be worth the bother.
4.39% is a good rate and if you are allowed to overpay on top then you could reduce the mortgage very quickly while not clearing it until the 3 year term is over!
Most lenders will only lend over £30,000 with a term of at least 5 years.