Re-mortgage?

ben2909

We are currently thinking of changing from our current mortgage to a 5 year fixed rate and need a little advice.

Current mortgage is with The Cheshire (repayment) @ 2% above base rate that we have been on for nearly 2 years since our last 5 year fixed rate ended.We have been paying approx £135 extra per month as overpayments for the last 18 months as well.

House valve will be around £100-£110k basing it on current houses sold around us,and we owe approx £59k.

I have seen Natwest do a 5 year fixed rate @ 4.39% with no product fees and they will pay legal costs.

We're not 100% sure if we should go for this,but it does seem a good rate for a 5 year fixed and will only cost us £180 in total to switch.
Current term is over 17 years 6 months left but we can afford the £59k spread over 13 years and still pay roughly the same as we do now.
Or we can spread the term over 17 years and do overpayments.

Are we mad to change to a 5 year fixed now and does this seem a good rate.I know no-one can predict the next 5 years,but opinions would be nice.

Peelerfart

Personally I don't think you would be mad to fix.

If you can make overpayments on the Natwest mortgage then I think you would be better retaining the flexibility of leaving the term at 17 years and making the OP's as you do now,assuming you have the proverbial six months rainy day money.

As an aside have you seen First Direct 5 year fix at 4.29% ?

Thrugelmir

Stay on the good rate you have and overpay. Maintain the mortgage term as it is for flexibility.

If you are concerned about interest rates rising, overpay by more than you already are.