Remortgaging and overpayments

scott72555

Hello everyone,

Was looking for some words of wisdom with the following scenario:

I currently have a property worth 170k, and a remaining mortgage balance of 127k, so about 75% LTV.

My current fixed deal with the Halifax expires in November, at which point I go to the SVR of 3.99%. I was on a fixed deal of 6.99%, 35 year term(Really wanted the flat and I got it for 145,k so took the hit on the only rate offered to me).

My current payments are £820 pm, come November they will drop to just over £500 pm.

I plan to continue paying the £820 pm to reduce the mortgage as best I can and save on interest payments.

The questions I have which I would like some input on are:

Come November, should I remortgage to a fixed rate deal such as the one offered by the Post Office- 75% LTV, 3.59% fixed for 3 years, fees for remortgaging £565, payments of £835, 17 year term, with a view of remortgaging again in 3 years time?

Or should I continue making overpayments to total about £820 a month as long as the Halifax SVR remains at 3.99%?

I understand that with overpayments generally you can pay no more than 10% of the balance off each year without incurring charges, but they then reduce your payments so that you still see out your mortgage term, meaning you have to make higher overpayments due to reduced monthly payments, is this correct?

Any help would be appreciated.

Scott

jameseadon

Could fix for two years with Halifax, currently 3.74%, and make your overpayments as suggested?