any better than this for what I want

ukdickie31

I have just £34200 left on my mortgage and 14 years left to repay. I have had the luxury of being able to massively overpay my repayment mortgage over the last 2 years so instead of paying £350 ish a month, I have been paying £1100. The mortgage was flexible and I was able to overpay what I liked and have no penalty.

I am now at the end of my 5.99 capped rate and want a similar type of flexible mortgage with no penalties or fees.

Coventry, my current lender can offer me totally flexible, no penalty overpayment, @ 6.24% fixed for 5 years which works out at £305 per month.There are absolutely no fees for this.

I can get lower than this with no up-front fees but they have early repayment penalties and restrictions in what I can overpay.

The next 'flexible' with no redemption penalties is 5.54% but £999 in fees.

Given the relatively small capital outstanding, I can totally repay my mortgage in just under 3 years if I can afford to repay £1100 each month as present. My calculations show that the lower rate with fees attached doesn't actually make any positive benefit to me as it could actually cost me more altogether.

I feel that there is maybe 1 more rate rise and this will take maybe 5 rate reductions to make my interest rate 'expensive.' I also reckon this will be 2 to 3 years time when interest rates make my deal not a good one on the interest rate. By then my mortgage will be negligible so interest may be minimal in the difference between half a percent... my balance outstanding may be less than £5000 in 3 years time.

I have done some searching on the net but the tie-ins, fees or other penalties on other products with other lenders seem to outweigh any benefits. I will probably stay put with my current lender and takes this offer.

Any one have any thoughts ?

JoeK_3

Good analogy.

Mortgage loans are fees sensitive under £58,000 and rate sensitive over.

Stay where you are.

JoeK

P.s I'll swap you mortgages

ukdickie31

Guess I'll stay put.

I may just try to squeeze something out of them, but when I called them yesterday, it was only this deal on offer, no 'special' incentives to retain my custom.

Cheers for the quick reply.