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Fixed Term mortgage but would like to move
spib
Posts: 16 Forumite
Hi,
We took out a 27 year mortgage with nationwide for £117,000 approx 3.5 years ago fixed at 5.58% for 5 years. This fixed rate ends 31st May 2012 and we currently owe about £109,000 against a property worth about £120,000 current market valuation. We will revert to nationwide's BMR (currently 3.9%) once the fixed rate ends.
We would like to borrow something in the region of £180,000 when we move, which is £71,000 more than we owe at present.
I have approx £8,000 in savings and can save in the region of £500 - £1000 per month.
What do think about the following
- Should I continue to save to move or should I overpay the mortgage instead (we can replay £500 per month without penalty).
- Should we wait for the fixed rate to end or remortgage now? It would cost approx £3000 ERC to get out of our current fixed rate
- Would it be better to just take out a second mortgage for the additional amount required (£71,000 ish)
Thanks for any advice
We took out a 27 year mortgage with nationwide for £117,000 approx 3.5 years ago fixed at 5.58% for 5 years. This fixed rate ends 31st May 2012 and we currently owe about £109,000 against a property worth about £120,000 current market valuation. We will revert to nationwide's BMR (currently 3.9%) once the fixed rate ends.
We would like to borrow something in the region of £180,000 when we move, which is £71,000 more than we owe at present.
I have approx £8,000 in savings and can save in the region of £500 - £1000 per month.
What do think about the following
- Should I continue to save to move or should I overpay the mortgage instead (we can replay £500 per month without penalty).
- Should we wait for the fixed rate to end or remortgage now? It would cost approx £3000 ERC to get out of our current fixed rate
- Would it be better to just take out a second mortgage for the additional amount required (£71,000 ish)
Thanks for any advice
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