Any thougts

confuseddad_2

Hi we bought a house and we have a fixed deal of 4.69 untill aug 2014 on a repayemnt of 171.000. (Thinking of joining the 100k+ club)

We have a penalty of a tie in of approx 7k.

We have good equaity approx 40-50% and we are overpaying at 200 per month. So reduceing the term.

We dont have any debts so what i need help is on if we are better going for another deal and taking the hit on the 7k as if we keep payments the same will it be worth it by reduceing the debt quicker?

Been beating myself up about making the wrong decision at the time.

_Andy_

7k erc is unlikely to achieve long term savings when you have an already low rate like that.
I would suggest keep on overpaying and stick with it
You didn't make the 'wrong decision'

Thrugelmir

If you can afford to, increase the overpayments on your current mortgage.

kingstreet

Unless you can tell us what deal you might change to, we have no way of doing the sums to see which route will end up costing you less.

hotchocolates

@confuseddad:

We are in the same situation.... mortgage of £260k on a £400k house... 4.8% fixed repayment until Oct 2014 with early repayment charge of £7.5k.
in addition we have £20k in savings.

We could use some of the savings to get us out of the fixed and onto a better deal, but we have decided to stick with it for now and make as many overpayments as we can instead. We will look into this in a years time (when the ERC will be a bit lower than £7.5k) and keep an eye on deals in the meantime.

dimbo61

Both 4.6% and 4.8% are good rates for a 3 year fix even today so why pay £7.5K to move to WHAT !
Best 5 year fixes are 3.99% with £1000 fee plus costs and you cant compare to a tracker