Please help

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Mortgage Overpayment Help
I have a mortgage with Nationwide on a 10 year fixed with 31 months remaining set at 4.89%.
It will cost me £1500 to ditch the fixed rated.
I am aloud to pay £500 overpayment per month which I do.
I also put £1500 into premium bonds per month too because of the £500 overpayment limit.
I have £100,000 left to pay.
I have done the ditch the fix calulator and it advises me to change. however my question is.....
How much would I save if I ditch the fix to 2.59% where I can pay the full £2000 in overpayment straight of the mortgage compared to what I am doing at the moment?
Thanks for your help in advance!!!
I have a mortgage with Nationwide on a 10 year fixed with 31 months remaining set at 4.89%.
It will cost me £1500 to ditch the fixed rated.
I am aloud to pay £500 overpayment per month which I do.
I also put £1500 into premium bonds per month too because of the £500 overpayment limit.
I have £100,000 left to pay.
I have done the ditch the fix calulator and it advises me to change. however my question is.....
How much would I save if I ditch the fix to 2.59% where I can pay the full £2000 in overpayment straight of the mortgage compared to what I am doing at the moment?
Thanks for your help in advance!!!
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If you then switch to overpaying with £2,000 a month it's likely that you'll have the mortgage repaid before there's much increase in cost due to higher variable interest rates. That increase looks unlikely for at least two more years, quite possibly four or more and you'd be on track to clear the mortgage in about three years.
Given the high repayment rate it's probably not going to be worth it for you to pay high arrangement fees to get a lower interest rate on the switch. That's because you wouldn't have the lower interest rate a higher fee buys you for very long.
There's higher risk if you become unemployed and can't afford it, which is part of why I mentioned four years and still trying to use £500 a month of optional overpayments. This gets you that £500 as an easy to stop safety margin and reduces the amount you need in a larger emergency fund to cover the increased mortgage payments.
So it's best to carry on as I am?
You never know I might even come up on the premium bonds !
Also, when your fix ends do you revert to BMR or SVR? That might be something worth considering before you ditch the mortgage because BMR is capped at base rate + 2%. New Nationwide mortgages are SVR.
Hope this helps,
MWC
Mortgage-free: January 2021
Retired: June 2022 (186 months early!)
Just as you are able to reduce your mortgage term now, I believe you would similarly be able to extend the term should your finances take a turn for the worse in the future.
Doing nothing different is definitely not the best course of action.
Mortgage 2 Oct 11 - £17k @ 3.19%(BR+2.69) July 14 £3k (£0 after offsetting)
Mortgage total Oct 11 - £135k July 14 £121k (£118k)
Reg Savers (6%) - July 14 £5.1k
ISAs - £0.6k
Santander 123 Acc (3%) - £5k