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Is my Sister stuck...
Dullville
Posts: 299 Forumite
My Sister took out a 10 year fixed rate of 6.99 in 2006 but with a good cashback deal(so she was told).
She recieved her statement today and her outstanding mortgage is 52k with a approx 7k early repayment charge.
Her house is worth approx 200k.
Is it worth her seeing a broker to see if they can get her a better deal??
Thanks in advance.
She recieved her statement today and her outstanding mortgage is 52k with a approx 7k early repayment charge.
Her house is worth approx 200k.
Is it worth her seeing a broker to see if they can get her a better deal??
Thanks in advance.
0
Comments
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Unlikely. Its going to have to be awfully good to eventually get back that £7,000, somehow. And before rates go up again...Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
She will pay about £18k of interest over the next five years. To get back the cost of the ERC she would to approximately half her interest(so look for a rate of 4%) .You would also need to factor in costs in remortgaging.0
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There are a few 3.95% 5 year fixed rates around, wouldn't be a huge saving though0
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Simple answer - probably not. Your sister should go and speak to a Mortgage Adviser who will be able to take all of her circumstances into account and provide an individual recommendation.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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What penalty free overpayments can she make?
WHat are the penalties for overpayment over this level
Are there any penalties/charges for changing term
What can she afford?
There may be options that will reduce the overall cost by borrowing elsewhere or extending the mortgage.
Interest only is £303pm on £52k
A remortgage of £59k would need a rate below 4.01% to break even paying £303pm
There would be other costs that would mean the rate would have to be even better0
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