Capped rate ending on 27K mortgage

ailuro2

Hi folks- our 5 year capped rate is due to end in June,when we will revert to the Co-operative's SVR,which is currently at 7.24%

We will have 27,000 left as the outstanding amount.House value approx 140K

Having read Martin's free Remortgage Guide it says that for mortgage amounts under 30K it is usually better to stay where you are as any savings are usually wiped out by the cost of moving the mortgage.

We currently pay 5.79%,overpay 150 per month, and will also have an extra 3000 to pay in as a lump sum later this year.The redemption on the capped rate also finishes in June,cannot see any mention in terms and conditions of mortgages that prevents early repayment beyond this date, we are currently limited to 10% per annum overpayments.Hi folks- our 5 year capped rate is due to end in June,when we will revert to the Co-operative's SVR,which is currently at 7.24%

We will have 27,000 left as the outstanding amount.House value approx 140K

Having read Martin's free Remortgage Guide it says that for mortgage amounts under 30K it is usually better to stay where you are as any savings are usually wiped out by the cost of moving the mortgage.

We currently pay 5.79%,overpay 150 per month, and will also have an extra 3000 to pay in as a lump sum later this year.The redemption on the capped rate also finishes in June,cannot see any mention in terms and conditions of mortgages that prevents early repayment beyond this date, we are currently limited to 10% per annum overpayments.

My question is, has anyone got any bright ideas on how to get a good deal out of the Coop when I phone to ask what they can do for us?

I want to be able to quote another good rate with someone else,to see if they would give us a discounted rate which we could still overpay on?

Thanks in advance for your help:beer:

ailuro2

Co-op have been in touch offering the same rates as on their website-

We are teetering on going for their tracker at 0.49% over B of E base rate, since there doesn't seem to be any overpayment charges involved and we'd like to pay it off a.s.a.p.

Anyone know of any better deals to quote when I phone them up?

JoeK_3

ailuro2 wrote: »

Co-op have been in touch offering the same rates as on their website-

We are teetering on going for their tracker at 0.49% over B of E base rate, since there doesn't seem to be any overpayment charges involved and we'd like to pay it off a.s.a.p.

Anyone know of any better deals to quote when I phone them up?

It sounds a reasonable rate as you would struggle to better it by too much. As your mortgage is only small, any better rate savings are only small.

Have you considered a fixed rate, as interest rate rises are imminent

JoeK

ailuro2

Yes, we know interest rate rise is imminent , but fixed rates all seem to be tied up with early repayment charges.:(

Because we want to pay off more than 10% a year of the capital we need a more flexible option.

Just on the phone to them 5.74% current rate, 0.49 above B of E, with 399 arrangement fee and 199 redemption fee at the end. Not bad, but would have liked a better deal though.

We will be getting rid of our MPPI protection though, don't really need it for 27K- if we were paid off our redundancy would cover the payments,so that's another few quid saved..

silvercar

Thinking outside the box, you could always take a larger offset mortgage and put the amount over the £27,000 you need stright into the offset savings account. You will then be paying on the £27,000 only. If you choose a flexible mortgage you could find one that allows overpayments.

I know the coventry to a flexx offset with free legals and valuations.

MortgageMamma

The woolwich have a tracker capped at the moment which has no term i.e. you keep it until the end of your mortgage, its capped at 5.99%

It has a small arrangement fee, I think 499 but would have to check, but offers free legals and a free valuation. One option would be remortgage onto that and stick with it until you have repaid your mortgage,

ailuro2

Have had a look at Woolwich's website, cant find the free legal version, so will give L&C a call today to ask if they can find it for us.It would save us around $500 over the 5 years.

Thanks for the help:D

DH asked me if we could take out a fixed rate mortgage over 5 years and would it count as overpaying over the 10% mark,which is the early repayment restriction we seem to be coming up against on decent fixed rates.
I'll ask today at L&C as we'd be quite happy to tie in to the bigger payments if it got rid of the mortgage in 5 years!

MortgageMamma

Just to add, there are no tie is on this product at all, except a small closing - charge when you leave - why go to L&C ? you only have a tiny mortgage so they probably wont prioritise you, if you know what you want and it fits the bill (and I cannot believe I am saying this, I am about to get jumped on by every broker on this site) then why not go to a cashback site such as mortgagegenie and get half the commission back as well? Even more money saving!

Mr_helpful

If your intention is to pay it off as quickly as possible stay where you are. I cant think of any really good no fee mortgages plus you would have an exit fee from the co op. Your mortgage is so small that any rise is not really going to hurt. If you throw everything at it you will be mortgage free in a couple of years

MortgageMamma

So if rates go up to 10% and their mortgage payments double, thats not going to hurt?!

Mr_helpful

not really because If rates went up 10% they could probably afford it whereas the rest of us would be out on the street but in reality they would have it paid off before rates got that high again