remortgage now or wait??

francodevil

hi all. i currently have outstanding on my mortgage £178000 and thats on a 5 year fixed rate which expires in july 2012. the rate is 5.65% and my monthly payments are around £960. what sort of deals can i get roughly in todays rates?? i will obviously follow this up with a mortgage broker but i just wondered if anyone had a rough estimate?? i would definately prefer a fixed rate although unsure as to the term length. can i just ask all you peeps what you would do in my situation? by the way its a 40 year mortgage with 37 years left to go on it, but obviously i wont be staying with my mortgage lender for that long! thanks in advance

franco

francodevil

oh and by the way, iv used martins mortgage calculator and my erc would be about £8500 meaning i would need a rate of 2.65 or better for it to be worth it......

blueberrypie

You can see what rates are being offered on websites like moneysupermarket.com - but you'll see that there aren't many mortgages available at 2.65% or lower, and those which do exist are limited to borrowers with LTV of 60% or better. I'm guessing that if you've still 37 years of a 40-year mortgage to run, you're probably not in that situation. (If you purchased three years ago, you might well be in negative equity, in which case you won't be able to remortgage at all until you've paid down the mortgage.)

francodevil

thanks for your info blueberrypie, much appreciated.

dimbo61

Check and see if you can overpay ?
If you are allowed that would be better than paying out £8500 on ERC,s and other costs to move lender and dont forget any overpayment is worth 5.65% tax free!

francodevil

thanks dimbo, great idea - cheers

francodevil

blueberrypie wrote: »

You can see what rates are being offered on websites like moneysupermarket.com - but you'll see that there aren't many mortgages available at 2.65% or lower, and those which do exist are limited to borrowers with LTV of 60% or better. I'm guessing that if you've still 37 years of a 40-year mortgage to run, you're probably not in that situation. (If you purchased three years ago, you might well be in negative equity, in which case you won't be able to remortgage at all until you've paid down the mortgage.)

forgot to mention im not in negative equity; next door (identical but old kitchen whereas ours is brand new) has just sold for £205,000 (so about £25,000 equity). Also would prefer monthly payments to come down rather than overpaying