Switch mortgage?

Alecra

Hi!
I'm currently on a 25 year fixed mortgage at 5.49%. I was thinking about chancing mortgages which looking at the numbers would save nearly £200 a month!! Or about 4 years.
But.... Is the 25 year fixed rate worth the extra as it is a nice security blanket knowing it will never rise.
I don't know what to do. Any advice would b appreciated. I know no one has a crystal ball.
Thanks.

ACG

You have a 25 year fixed rate? Are you sure? It doesnt sound right.
Who is that with? I have never come across anything more than a 10 year fixed rate.

What are the early repayment charges on that?

dimbo61

Why did you take a 25 year fix in the first place ?
Has anything changed since you took out the mortgage ?
Like you said would you be kicking yourself if rates are 10/14% in 7/10 years time.
You need to look at the ERC,s to get out of the fix and costs to take out a mortgage with another lender.
Security of knowing your mortgage payment every month cannot be under estimated.
Will you still be in the property in 10/15 years

Alecra

Hi. Yes it's definitely 25 year fixed. We took it out in 2007. It's with nationwide. I believe there were a few around then.
Not sure if we will be here in 10 years. But the mortgage is portable. (We've already moved once and taken the mortgage with us).
Just looking at all predictions, not much is going to happen in the next 5 years, so the money I could save could offset any rise, couldn't it?
We're currently paying about £920 a month, and some quotes I've seen could take it to just over £700.
I always thought the security blanket was worth the extra, but £200 a month is a lot!!

ACG

On the face of it, it would seem to make sense to switch, you could get your balance down considerably before rates do rise again but then you do risk rates rising and being caught out.

I think personally i would take the risk though - depending on ERC's.

dimbo61

Overpay your current mortgage !
Check with Nationwide but I think they allow £500 a month
This will save you 5.49% tax free
The more you overpay the smaller the outstanding balance

Alecra

You are correct. They do allow £500 overpayments. I've dumped £3500 7 x £500 in. Each times my payments come down by about £4 a month. Not bad when you do the maths.
My head says stick with the mortgage. My heart says get a new one.
Could you imagine that rates would be 7-10 %?