Should we remortgage?

missy321

Hi guys... Thought I would ask a few questions on here before going to see a financial advisor. We have 1 year left on our fixed rate 6.19% £825 p.m. Mortgage. I just received our yearly mortgage statement and I am wondering if anyone thinks it would be worth remortgaging to a svr with same/diff lender. We have approx 15% equity.

Don't know if I have put enough info on here but a quick calculation online said I'd be paying almost £200 cheaper a month remortgaging, but I have a £4K penalty & fees for new mortgage.


Any advice greatly appreciated.

sammyjammy

Almost certainly not, if you're looking at a payment thats £200 less thats only a saving of £2,400 over the 12 months you've got left so if its going to cost you £4000 for the ERC then that'll be a no.

Can you overpay to offset the costs of your rate?

Simon_gloster

You cant remortgage onto SVR's, even paying a charge with current lender, you cannot go to SVR. Its a default rate only available when you have done your time.

missy321

The amount we could afford to overpay would be £100 a month, sometimes less depending on circumstances etc.

I worded that wrong, sorry! realised I didnt mean svr, I mean tracker or another fixed at a cheaper rate.

Thanks, definately sounds like it will be best sticking it out, just feel that the rate is huge compared to what's available, you win some, you lose some I suppose!

Thanks again,

Thrugelmir

missy321 wrote: »

The amount we could afford to overpay would be £100 a month, sometimes less depending on circumstances etc.

Worth doing if your current mortgage product allows.

The better that your LTV becomes. The wider the range of options you will have in the future.

missy321

We have been thinking about overpaying, definately going to this month now!

jimjames

What is the rate that you get once your fix comes to an end?

missy321

Hi the mortgage advisor said our rate will drop from 6.19% to 3.99% on 01.08.13... roll on Aug 13!!!!!!!!!!

Thanks