Mortgage query

Michaelangelo

I have been on a fixed 5.99 for 5 years since August 2007. My mortgage advisor fixed it for 5 years as I only had five years left on my mortgage even though I only asked to fix it for 2.They said I would end up paying product fees again after 2 years so it was best to fix it until the end. Anyway I agreed and to be fair no one probably could have predicted such a nosedive in interest rates at the time. So I have a predicted £11,800 from endowment and the mortgage has an interest only section for £11,500 which this should cover, at the last morgage statement dec 09 I owed £19022.96 altogether and if i wanted to repay it all I would have had to pay £19718.64. I am paying £291.38 a month repayment until August 2012. Anyway I would like to know if it is worth getting out of the fixed rate and doing something else. Any sympathetic advice would be appreciated

Thrugelmir

Make overpayments on the mortgage if you have the funds. As you're savings are unlikely to be earning this rate of interest.

Your mortgage balance is small, so the fees involved in remortgaging will not be recouped over such a short time frame.

HappyMJ

The mortgage amount is too low. Any product fees now would wipe out any savings and you would be much worse off. You only have until August 2012 then the mortgage finishes so wait until then.

TrickyDicky101

With only 5 years left when you originally agreed to this fix, I have to ask how much product fee did you get charged? With such a limited amount of time remaining, most of your repayments would have gone to paying off capital, not interest being charged. I would argue that a fixed term when so close to maturity is hardly ever worthwhile (dependent on rates on offer/fees charged at the time of course) because increases or decreases in the rate of interest you pay would only have minimal effect on the size of the repayments you make.