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to fix or not to fix
haras_nosirrah
Posts: 2,208 Forumite
I have £20k on one part of the mortgage that is about to go onto nationwide variable at 3.99%
They are offering a 2 year fix at 3.19% with no fee and £300 cashback
Am trying to clear this bit of the mortgage in 2 years (currently at 7 years and overpaying £500 a month) so am wondering whether to fix this bit and set at a term of 2 years or to go onto variable and have the freedom to repay as much as I want rather than the £500 a month maximum.
Any thoughts?
They are offering a 2 year fix at 3.19% with no fee and £300 cashback
Am trying to clear this bit of the mortgage in 2 years (currently at 7 years and overpaying £500 a month) so am wondering whether to fix this bit and set at a term of 2 years or to go onto variable and have the freedom to repay as much as I want rather than the £500 a month maximum.
Any thoughts?
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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Comments
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Hi, I would see if they would shorten the mortgage term to 2 years. This would require you to pay slightly more than you are paying now, but it would get rid of it in your 2 year time frame.
Alternatively, if you want a bit of flexibility to not overpay every single month for the next two years, ask them to shorten it to 3 or 5 years. This will increase the monthly repayment, so your repayment allowance lets you go repay more in total when you want to.
Does that make sense?Borrowed £150,000 in an offset tracker mortgage in May 2007 - MFD May 2041 (67)
Jan 2012 - £125,620.02 / 2,913.87 / Nov 2032 (58) :beer:
Apr 2012 - £122,901.88 / 3,170.91 / Jul 2032 (58)
Jul 2012 - £122, 589.02 / 3,507.99 / Sept 2032 (58)
Oct 2012 - £120,476.31 / 3,889.42 / July 2032 (58)0 -
Well said Sepa74
I agree. Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370
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