ditch my fix help

podgeylad

hi
any advice please

The ditch my fix calculator says i need a rate of 4.89.
i have a 10 yr fixed mortgage at 6.1% that ends 5yrs 9 months aug 18 with an erc of £5091 reverts to standard .
i can change mortgage to 4.49% fixed till feb 17 then standard with no other fees
over 24 yrs still owing 95000

with the new fix only being 4 years its confusing me
would i be saving?
thanks

podgeylad

advice anyone?

bigadaj

Looks like a marginal saving. Ballpark figure is that the difference in rates over a 100 k mortgage would mean you save £1600 per year, so £6400 in total. This obviously outweighs your early repayment charge but if this is then added onto the mortgage, then you pay interest on this, looking at around £1000 over the four years.

The other issue is that you don't know what rates will be in four years, it could be that they go back above 6% and you could then be worse off, all crystal ball gazing really.

dimbo61

can you overpay on your existing fix

podgeylad

Thanks. That's roughly how i get it if i overpay on the new rate the same amount the capitals about £800 better off after the 4 years. Then the 18 months i would have been on 6.1 the rates could be higher so like u say crystal ball. Think il let it run.
Thanks for the replies.
And i don't overpay currently. Could prob bang another £50 a mth though.

dimbo61

That will save you 6.1% TAX FREE each month you can overpay