exit of current fixed deal, sanity check!

cadmonkey

Had my annual statement through recently opened, read thensighed.

Fixed it just for 10 yrs over 5 yrs ago @ 4.98%, originally£1119k over 30 years. I still have 4yrs and 4 mouths remanding onthe 10 yr deal, now looking at the figures and totalling it all up I owe £113K(total cost of repayment in full) £106.5K balance plus £6K early repaymentcharge.

Looking at how little I’m chipping away at it lead me tothink what I’d owe when the deal ends I found some calculators and tried to figurethings out. I worked the figure to be £96516, this is where my thinking startswould it be best to quit from the current deal and remortgage? Looking about Ifound a 2.79% 5 yr fixed with £1k fees and as my house is worth £225K I fit theless than 60% LVT bracket, so trying to recalculate the numbers if I remortgagethe £114k (full repayment plus £1k cost) in 5 yrs I’d owe £88095 So I see a possiblesaving over the next 5 yrs of a fair amount, I played with the term as leavingit at the 24y 4months went in the wrong direction (owing £100k) so I reducedthe term to 15 yrs (payments change from £640 to £775 within my budget).

Getting to my question, does this all work out correctly or haveI missed something obvious?
Thanks for your time

latecomer

Put the figures in here and see what it says:

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

ScotlandM

When you calculated you owed 88095 was that with the reduced term of 15 years?

If so you're comparing apples and cheese, you can only compare them with the same term, as you said the payments went up (though you can afford) so of course you will owe less if you're paying more.

firesidemaid

do you have any savings?

you could just overpay (monthly or yearly as your mortgage terms allow) to have a similar effect.

as you fixed over 30 years, the actual proportion of money coming off capital in the early years was always going to be lower.

if you had been paying that extra £135.00 a month for the last 5 years then you would owe between 8-9k less at this point - the benefits of overpaying:)

cadmonkey

ScotlandM, yes reducing the term.
Firesidemaid, my plan was to compare by factoring an overpayment on my current motgarge, with the monthly total equal to the new one.

the figures i come up with after the 5 year are:
sticking & overpaying (£775/m) balance £85500
new deal (£775/m) balance £81500

so a £4k saving over 4 years?

latecomer

Looks about right to me.