Mortgage ending soon, plod along or overpay?

confusedbunny368

Dear All

I have a 5 year fixed rate mortgage with Woolwich 5.69% ending 31st Jan 2012 revert to base rate +0.95. My current balance is £16500. If I continuing paying at this rate mortgage is due to finish in November 2013.

I have never made any overpayments but now have some spare cash. I rang Woolwich today and they confirmed I could make a £2k payment by the end of this week (my 10% for this year), and then 10% from 1st February onwards. What I am wondering is, do you think I should make these overpayments or just plod along as I have been doing? The Woolwich confirmed that if I want to get a more favourable rate I would have to change rates and pay up to £800ERC and then I don't think they will even give me a remortgage for an amount as low as £16500 for less than 2 years. I'm a bit confused by it all. Any advice gratefully appreciated.

CloudCuckooLand

Overpay...you cannot get 5.69% after tax from many savings products.

TrickyDicky101

Do NOT remortgage - there is absolutely no point given your very low balance remaining. Overpayments will earn at the rate of 5.69% until conclusion of your fixed rate which is a magnificant return.

fozzeh

Do as Dicky says! You get this overpayment in now and the next one, you'll be done about 6-8 months earlier!

brit1234

Overpay as much as you can before interest rates go up.

confusedbunny368

Thanks for your responses. I'll make those overpayments and may even try to reduce the term a bit more myself so that when it reverts to the base rate whatever that may be I will only have to spend the minimum time on it.

Thank you!

WidowTwanky_2

Congratulations Confused Bunny! I'm in a very similar predicament to you, owe £16000 and 3 years left on my mortgage.
I want to pay off a lump sum, someone (not a bank or mortgage lender) is lending me, interest free, £4K, I will put £6K to this, so I'd like to pay £10K off right away and then I'll be mortgage free in one year!
However, can I pay this much off? And if so, what kind of penalty will I be charged.
I am on no special deal, no fixed rate, nothing, just the bog standard SVR repayment mortgage I started out with a million years ago. Any ideas? I'm sick of phoning Santander and them telling me I have to go into a branch...:wall: