Can i or is it worth switching a 90% LTV mortgage?

kierap

Three years ago we locked into to a five year fixed mortgage with c&g. We moved a year ago with the mortgage and added extra to it. It is now a 90% LTV mortgage at 6.29% on £220,000 which is £1300 a month and it is killing us! The ERP is £7000 i want to know if it is worth paying this and getting a lower rate mortgage ( if that is possible!) to reduce monthly outgoings? Or just grit our teeth and bare it for the next two years? Any advice welcome. Thanks

beecher2

I can't see you getting a good enough deal to make it worthwhile but you'd need to work out what 90% deals are out there, what the rate is, and how much you'd save over 2 years. Remember to add the fees etc. Then weigh up your options. Go onto Debt Free Wannabee forum for help with budgeting - you must have a substantial income to have got that size of mortgage, so might have room to free up money elsewhere.

madmish00

Potentially could be worthwhile but it would depend on what rate you could get.

Have you tried the Ditch your Fix calculator on this site? Running a rough calculation not factoring in any arrangement fees on a new mortgage you would need a rate that was less that 4.59%

Edited to add: But think about why you wanted to fix in the first place. When variable rates inevitably go up you may find yourself back in the same or worse position.