Re: Re-mortgage? Current rate 6.0%?!

smartsaver2011

Currently with C&G on the above interest rate..the rate available at the time.Fixed for 5 years, had for two years. Can we get a loan to remortgage at a lower rate as currently the interest rates are a lot lower and hopefully have fixed for longer? Any advice welcomed..also is there some sort of comparison tool anywhere? Thank you!!! xxxx

BoGoF

Do you know how much your ERC will be?

Also how much outstanding and value of house?

smartsaver2011

We have £16500 left and value is over £175000/£185000. Originally mortgage for £175000

What does the E etc stand for?

smartsaver2011

£6000 is early repayment charge!!! Changes to 4 in one years time xxx

smartsaver2011

£152000 Left on mortgage too (typo)

dshart

Basically you need to work out the cost of remortgaging over the remaining 3 years of your current fixed rate. I am sure people on here can give you details of how to work it out more accuratley but basically compare the monthly repayments for a new lower rate mortgage and add £167 (ERC £6000/36 months) per month. If this works out lower than your current monthly payments then it may be worth while remortgaging.

There are other factors to be taken into account like costs to remortgage and interest rates rising, but the above calculation should give a rough guide. With the redemption figure they give for next year it still works the same (4000/24=167).

darkcloudi

What you should first investigate is to see what kind of rate you can get, a mortgage broker would able to determine what rates you can get based on your Loan to Value (LTV).

I put in some of your figures above in to Nationwides website and they have a 5 year deal at 5.14% but thats if the house comes out at £180,000. If it comes out at £178,000 or less they won't touch you as it comes back with the message "The mortgage amount is too high for the property value." this is due to the Loan To Value (LTV) of the property.

If you do decide to look in to a new rate you need to be ascertain that the property can come out to the expected valuation as you may find yourself with the surveyor value'ing it less then what you had suggested due to the current market, which therefore means you may not get the rate that has been offered and be offered a higher rate or nothing. This will mean fees you paid upfront to reserve the mortgage and surveyor fees will be lost, you should take this in to account when shopping for a new mortgage and the Early Repayment Charge