What to do on a remortgage

ginnytravel

We currently have 1900k outstanding over 8 years on a 1.45% repayment paying £230 a month. In addition we have 13000k outstanding over 13 years on a 4.99% repayment paying £110 a month.

Looking to remorgage to save but doubt the 1.45% can be improved upon. We are interested to know are we better just changing the 4.99% mortgage or combining both and remortgaging? Unfortunately my brain cannot comprehend which way to work it out:o Thanks so much in advance!

Thrugelmir

You won't obtain a rate as low as 1.45% in the market. So best left as is.

Who is your existing lender? Do they offer a product better than 4.99%?

In addition make overpayments to the 4.99% account. The way to save interest is owe less. In addition you'll clear your mortgage balance quicker.

beecher2

Are you sure of your figures?

Paying £230 for £19,000 over 8 years should be a lot less at 1.45%. I calculate your rate must be closer to 3.5% to be paying that amount.

ginnytravel

Thrugelmir wrote: »

You won't obtain a rate as low as 1.45% in the market. So best left as is.

Who is your existing lender? Do they offer a product better than 4.99%?

In addition make overpayments to the 4.99% account. The way to save interest is owe less. In addition you'll clear your mortgage balance quicker.

Lender is Alliance & leicester and I will check for better rates but have seen HSBC do some good deals. One friend recommended combining and getting a low rate for both?

ginnytravel

beecher2 wrote: »

Are you sure of your figures?

Paying £230 for £19,000 over 8 years should be a lot less at 1.45%. I calculate your rate must be closer to 3.5% to be paying that amount.

Mmmm you have got me thinking but I have statement in front of me showing April balance at 18983.50 added interest 22.62 deduction of £270 (my husband sometimes pays more) balance for May 18736.12. 7 years and 7 months remaining?

Its just all confusion to me, lol!

beecher2

You should be paying £210 which isn't a 'lot' less as the sums are so low to start with so sorry about that! Since a 1% increase in rates only costs you £10 extra on this part of the mortgage, it may well be worth putting the two sums together and remortgaging. Before you look at that though, would you have an ERC to pay on either part?

ginnytravel

beecher2 wrote: »

You should be paying £210 which isn't a 'lot' less as the sums are so low to start with so sorry about that! Since a 1% increase in rates only costs you £10 extra on this part of the mortgage, it may well be worth putting the two sums together and remortgaging. Before you look at that though, would you have an ERC to pay on either part?

Yes we have a £295.00 to pay on the £19000 loan should we decide to leave.

Thrugelmir

ginnytravel wrote: »

Lender is Alliance & leicester and I will check for better rates but have seen HSBC do some good deals. One friend recommended combining and getting a low rate for both?

The total amount you are looking to remortgage and along with the remaining term may make you an unattractive borrower to a lender such as HSBC.