Remortgaging forever

dfleetwood

Hi there,

This is my first time on here so bare with me. My current house is almost 4 yrs old. My wife and I bought it from new and changed our first mortgate after the initial 2yr discount term was up with no penalities. We currently have a 3.99% fixed rate from Yorkshire BS due to revert back to std variable in Feb. I was planning to keep changing mortgages until the house is payed off thus never having to pay the full rate of interest.........in theory.
Can anyone advise me if this is financially a sound idea or will unaccounted costs mean I'm shooting myself in the foot?

payless

At some point it may become pointless / non available
( ie if fees rise and as mortgage debt decreases) , but always worth doing the calculations-

dfleetwood

I'm finding it difficult to do the calcs to compare fees against savings made over the offer term. I'm also not sure how to work out the total benefits over the full planned term of the mortgage. At present I've got a pt repayment pt endowment and looking to increase the repayment pt to free up capital from equity as there's plenty on the property and not looking to move.

Do you know of any way I can do this easily? Also, what makes up the diff between an advertised mortgage rate and the APR? Is it something relating to the fees?

dfleetwood

I'm finding it difficult to do the calcs to compare fees against savings made over the offer term. I'm also not sure how to work out the total benefits over the full planned term of the mortgage. At present I've got a pt repayment pt endowment and looking to increase the repayment pt to free up capital from equity as there's plenty on the property and not looking to move.

Do you know of any way I can do this easily? Also, what makes up the diff between an advertised mortgage rate and the APR? Is it something relating to the fees?

payless

It can be difficult - as really you need a proper illustration to compare the savings on monthly payments , and the differences paid off capital-

initially in the short term might be easier to look at figures assuming purely interest only.

APR does include various assumptions for future rates and possible fees, maybe not an ideal system to rely on for exact product comparsion , but it's a start