Should we try to remortgage?

Benson

We have 100k left on the mortgage taken out over 7 years on a 5 yr fixed fee of 6.19% (yes it makes me weep) but at the time it was the lowest everyone was offering!
We have just over 5 years on the mortgage left so still well and truly fixed in.
The reason we haven't looked before is that my H and I were self employed so it was a nightmare when initially remortgaging! Were now paid directors so would hopefully be easier (although would leave this to the accountants to deal with the proof of income)

But my question is should we just sit tight and try to overpay or is it really worth looking at a new deal and absorbing any fee? (I think it was 1.5k although will check that tomorrow

Thanks

Thrugelmir

Yes to overpaying. Even while you are weighing up the options. As you'll be unlikely to better the return of overpaying debt.

What's your LTV on the property ?

As this will determine the options available to you in terms of the interest rate on remortgaging.

Is your limited company a continuation of your self employed status, i.e. same business?

TrickyDicky101

Did you mean you only have 5 years to run on the mortgage until it should be fully repaid? If so, you will be relatively insulated against increases (and decreases) in interest rates in any case as you have such a short time until maturity the majority of your monthly repayments will go towards paying back capital. You need to factor this into your calculations eg a £100k loan with 5 years until maturity (repayment basis) will cost monthly:

£1,775 @ 2.5% pa
£1,887 @ 5% pa
£2,004 @ 7.5% pa

so even pretty big swings in interest rates won't substantially increase the monthly repayments

Benson

Hi Thruglemir, The house is worth 250k and we have 100k left and yes the Ltd company is a continuation of our self employment, will that make much difference?

TrickyDicky, we have about 5 years left of the mortgage with about 3-4 years left of the fixed rate, paying back capital does this mean we're just mainly paying interest?
We've had the house 10 years but after ever 2 yrs of fixed rate ending we knocked a few years off the term to try and get it down etc

Im not very clued up when it comes to mortgages (H is even worse) and am just wary of goign to a mortgage broker in case he just tries to sell a product, so wanted to be clued up before i speak to anyone etc

Thanks,