Should I break my 5 year fixed rate?

shortchanged_2

How long have you been in the property?

getmore4less

£420k@ 4.15% i/o £1453pm

£21k fees

£441k @ 1.99% i/o £732pm

saving £721pm.

To get back to £420k in 2 years the payment needs to be £1590. (£140 more)

But you have other debts which are costing more than the mortgage so tackling them may make the move worth while, but this has the side effect of just securing them.

one of my hopes for reducing our outgoings was to move to a smaller mortgage...
I am currently paying off the debt at £500 a month so i am not sitting back hoping it will go away on its own . £7k of the debt is on an interest free credit card which I move every time the 0% deal runs out. and £10k is a loan at 7% which will be paid off in 3 years

Looking at the 7k loan asuming no penalties to pay that off.
£10k 7% 3 years is £309pm with £1116 in interest

Add the £10k to the mortgage at 1.99% over 2 years is £426pm £209 in interest

Saving still does not save enough to cover the losses on the mortgage move.

The £7K CC you BT will cost 3% each time.


Whats the followon rate for this current fix? (sorry if I missed it) if that is good then hanging on will almost certainly be the way to go.
Followons are critical part of the process

JimmyTheWig

getmore4less wrote: »

Whats the followon rate for this current fix? (sorry if I missed it) if that is good then hanging on will almost certainly be the way to go.
Followons are critical part of the process

5.69% SVR according to post #29.
Which adds weight to the "stay as you are" argument.

getmore4less

JimmyTheWig wrote: »

5.69% SVR according to post #29.
Which adds weight to the "stay as you are" argument.

That's a killer if you can't get another deal at that time.

The followon for the current 4.15% not seen that.

AMILLIONDOLLARS

I think the bottom line is that the OP should look at reducing their day to day expenditure and concentrate on paying down debt and unnecessary spending, then the current mortgage would seem more affordable.

AMD

JimmyTheWig

getmore4less wrote: »

That's a killer if you can't get another deal at that time.

The followon for the current 4.15% not seen that.

Oh, I see. You mean you expected me to have actually read what you'd written rather than answer the question I was expecting you to ask!
D'oh.