Advice for my Dad please

rach83

My Dad has a mortgage of about £50k. House value £500k. No other debt. He is 51.

He current is in a fixed deal with Nationwide which has 3 years left to run. Redemption fee £1200. Interest rate 4.89%. Took out a 10 year fixed 7 years ago.

Given his LTV he should be able to get a really good deal and feels he is paying over the odds now.

What are his options. Could he save himself some money?

Thanks

GMS

rach83 wrote: »

My Dad has a mortgage of about £50k. House value £500k. No other debt. He is 51.

He current is in a fixed deal with Nationwide which has 3 years left to run. Redemption fee £1200. Interest rate 4.89%. Took out a 10 year fixed 7 years ago.

Given his LTV he should be able to get a really good deal and feels he is paying over the odds now.

What are his options. Could he save himself some money?

Thanks

Does he have an income? Does he have any credit issues?

He may be able to get a better rate but it needs to be considered carefully.

£1200 to get out of current deal is £33 per month for 3 years so this needs to be saved each month to break even. Then there are fees to consider such as arrangement fees, valuation fees and legal fees.

Do the sums carefully.

latecomer

Put the numbers in here:

http://www.moneysavingexpert.com/mortgages/fixed-discount-mortgage-guide#calc

rach83

Hi

Thanks for your reply.

No credit issues. He and my mum have perfect credit.

He and my mum have an income of about £50k pa. The mortgage is held jointly with my mum.

I will direct him to this.

Thanks