Mortgage Question move or stay with lender

rfowler

Hi Guys,

I need some help with my Mortgage, I am currently on a 5 year fix rate of 4.59% (2 years in) and I have seen othere banks offering better rates, so now I don't know if I should move or stay, is there a calculator that can help ior some advice?

All comments welcomed

jandg

You could do with checking the fee for early redemption. That is the amount they charge if you don't go full term with the agreed mortgage. Also any deed release fees. It could mean that even though you get a better deal elsewhere the cost to move outweighs any savings. Especially as a new mortgage lender could charge fees for their mortgage.

Saying that you have got 3 years left on you existing mortgage.

You could google a calculator site to workout the costs of various mortgages. Loads come up!

Hope this helps

kingstreet

If you remortgage, what kind of product would you remortgage to?

If another five year fix, you'll reduce your rate by less than 1%, so are you looking at a variable product as your alternative?

Find out how much the early redemption penalty will be, then add it to the mortgage you currently have outstanding. What is that combined redemption figure as a percentage of the current value of the property?

You have now calculated the loan to value, or LTV. The best products are reserved for deals under 70% LTV. The higher the LTV the worse the rate. Have another look at the products available to you and your LTV. What could you get?