Mortgage : Stay On Current Fix Or Move Elsewhere/To Variable

siliconbits

Here's my dilemna. Two years ago. I took a 7 year fix at HSBC (£97500, 75 pc, 5.29%) at a time where the future looked uncertain. Now with the BoE pledging to keep interests low (see http://www.moneysavingexpert.com/news/banking/2011/07/interest-rates-held-at-record-low) , I am keen to see whether I cannot move elsewhere to reduce my outgoings, bearing in mind though that I may have to pay for an exit fee and go through the whole (new) process of remortgaging my existing property. I am keen to hear from MSE users who have been through this already (fix > variable) and whether they have some tips (e.g. discuss with bank to reduce exit fee etc).

dimbo61

Will the bank reduce the exit fees ( most unlikely)
How much is the ERC and can you get a better deal elsewhere ?
Can you overpay by 20% a month without any ERC,s!
What is your property worth now? and what is the LTV?
Things have changed since you got the mortgage and there is a chance that no one else will lend you the amount you need to move lender unless you have a few £thousand pounds sat in the bank spare

siliconbits

dimbo61 wrote: »

Will the bank reduce the exit fees ( most unlikely)
How much is the ERC and can you get a better deal elsewhere ?
Can you overpay by 20% a month without any ERC,s!
What is your property worth now? and what is the LTV?
Things have changed since you got the mortgage and there is a chance that no one else will lend you the amount you need to move lender unless you have a few £thousand pounds sat in the bank spare

Will the bank reduce the exit fees ( most unlikely)
>>>>>>> Need to find this out actually, you're right.
How much is the ERC and can you get a better deal elsewhere ?
>>>>>>> 1pc per annum on remaining mortgage for the duration of the mortgage period (five years). Better deal elsewhere? Yes, nationwide for e.g. does 4.19 per cent
Can you overpay by 20% a month without any ERC,s!
>>>>>>> Yep
What is your property worth now? and what is the LTV?
>>>>>>> Haven't had any re-evaluation in the past 2 years. LTV is 75 pc.
Things have changed since you got the mortgage and there is a chance that no one else will lend you the amount you need to move lender unless you have a few £thousand pounds sat in the bank spare.
That's well worth thinking pondering on as well.

dimbo61

5% ERC that would break my heart to pay that and I dont think even if you moved to the 4.19% five year fix with Nationwide would you save that much over 5 years.
You have long term security and its not a bad rate ( even the best 5 year fixes are still 4%)
You are best to overpay by the 20% allowed if you can afford it and think of the good old days when old people like me were paying 15%!!!!!!!