Re Mortage Advice

rjtyrell

Hi all,

Just looking for some advice really, our current deal is due to end in October which was a fixed 5yr at 5.99%. To date we have £121,000 outstanding.

I have the option to pay 10k off this off when we transfer, so reducing the mortage to £111,000.

Questions are:
1) is it worth using this 10k to reduce the mortage
2) is a fixed better with the current market
3) how many years should I do at a fixed rate

kingstreet

What's your follow-on rate? This is the rate your mortgage reverts to when the current fix ends.

Once you know that, ask your current lender what other offers they have for you to stay.

Last, think about remortgaging to a new lender. See what offers you can find and look for fee-free deals so it costs you nothing to transfer.

We can't really tell you if you should fix and how long for, you're going to have to decide what is important to you, and why.

Why do you have to wait to make that overpayment? Most lenders allow you to make an overpayment every year of upto 10% of the mortgage balance. You may be paying interest you don't need to if you haven't made an overpayment in the last year. What rate are you getting on your savings?