A bit confused about possible remortgage

Savernotspender

Hello,

My partner and I have been on a variable mortgage at a current rate of 2.49% since our fix ended last year as I couldn't really find a rate that was worthwhile moving too once fees were taken into account.

Now that rates seem to be lower I was looking at the Tesco 2yr fixed rate at 1.74% I've done the following sums;

Current Mortgage 2.49% variable, exit fees £275.00
New Mortgage 1.74% fixed 2 years, £1495 fees (free valuation and legal fees) we've got the 60% LTV needed

Current monthly payment £1556

New monthly payment £1460

So over two years;

Old; £1556*24 = £37,344
New £1460*24+£1495+£275=£36,810

So saving of £534

So my questions are;
1) have I got my calculations right?
2) I've never re-mortgaged before, is it a hassle? would it be worth it for savings of £534?
3) once the fixed rate period ends it reverts to the SVR which is something like 4% which I wouldn't want to stay on, I can't quite get my head round if I need to take into account the fact that in two years time we'll need to pay another £1750 or whatever in order to move to another deal, or does it not matter because we've saved £500 and we're starting from "scratch"?

If it makes any difference we currently overpay by £150/month and if we did change mortgage then I'd put the difference in payments plus the £150 into our Santander a/c paying 3%

Many thanks for any help,

PS. you get clubcard points as well, I don't have a clubcard at the mo, could anyone enlighten me how much 365 points is worth? you get 1 point per £4 in payments.

originalmiscellany

I think that interest rates are going to stay this low (possibly a bit lower) for the next year, so i would imagine it's not urgent to swap immediately.
2 years isn't a big time frame.

Depending on your mindset, I would wait for as long as possible at this low rate you're on then fix for 5 years on the best rate possible which would give you security and peace of mind, but I don't foresee any changes in interest rates for the next few quarters.

Thrugelmir

Savernotspender wrote: »

So over two years;

Old; £1556*24 = £37,344
New £1460*24+£1495+£275=£36,810

So saving of £534

And when the 2 years up? Go through the whole process again. As the SVR you will find yourselves on is far higher.