Please help!

vitodelfine

getmore4less wrote: »

That will change the numbers a bit in favour of staying on the higher rate as long as you can overpay.

1. £70000 @ 5.49% 11y £708pm
2. £73686 @ 2.65% 7y £962pm

Pay both at £962 for 2 years end result

1. £53,759.81
2. £54,008.22

Thank you again.

Basically I would not get my money back reducing my mortgage for 4 years?
At the moment I pay around let’s say £358 of the actual capital and £350 interest. (this is roughly) I thought by reducing my mortgage by 4 years, I would save; £350 interest x 48 months. I guess I am completely wrong?

Thanks again and I am sorry about all these questions.

getmore4less

vitodelfine wrote: »

Thank you again.

Basically I would not get my money back reducing my mortgage for 4 years?
At the moment I pay around let’s say £358 of the actual capital and £350 interest. (this is roughly) I thought by reducing my mortgage by 4 years, I would save; £350 interest x 48 months. I guess I am completely wrong?

Thanks again and I am sorry about all these questions.

You will save at the end of the mortgage but you need to look at the 2 years first.

If you pay the same monthly payment on the current deal as you would on the new one you will be worse off changing,

What happens after that depends on the rate and how much you pay.

What are the follow on rates for both deals?

Wh05apk

getmore4less wrote: »

You will save at the end of the mortgage but you need to look at the 2 years first.

If you pay the same monthly payment on the current deal as you would on the new one you will be worse off changing,

What happens after that depends on the rate and how much you pay.

What are the follow on rates for both deals?

As has been said, there is no appreciable benefit in paying penalties to move the mortgage, if you can do overpay now on your existing deal.

Once again the follow on rates are largely irrevelant until Jan 2013, and a lot can and will happen before then.

vitodelfine

getmore4less wrote: »

You will save at the end of the mortgage but you need to look at the 2 years first.

If you pay the same monthly payment on the current deal as you would on the new one you will be worse off changing,

What happens after that depends on the rate and how much you pay.

What are the follow on rates for both deals?

Hi. I am not sure how much the follow rates are.

I have contacted Britannia and they allow me to overpay my mortgage a max of £399 a month.

I have also asked how much my mortgage would be if it was for 7 years instead of 11.

Basically, making an overpayment of £300 a month, it would be like if I had a 7 years mortgage with them.

So, instead of paying all these fees, I will make £300 overpayment each month and at end of my contract with them, in 2 years time, I will remortgage for 5 years.

I was blind by the fact that I could reduce my mortgage for all those years, but thank you to you guys, I can now see that it was not the best choice.

Thank you very much ALL for your help.

dimbo61

In 2 years time look at offset mortgages and build up savings in the offset accounts