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Should i switch rate before making overpayment?
MichaelUK_2
Posts: 12 Forumite
I have 3k saved and am wanting to make an overpayment on my mortgage, just not sure if i should move to a different tariff first.
The mortgage balance is around 62k, I lived in the property initially but since moving in with my girlfriend I have been letting it out. In order to let with my current mortgage I had to pay £300 for a permission to let from Santander.
The mortgage is now on the standard rate of 4.74% and the only option they can give me is 4.69% fixed for 2 years with a transfer fee of £999 and another fee of £100 (Total £1099). The fee's are due to switching me to a BTL mortgage I believe.
Would this be worth doing or should I just make the overpayment on my current rate and carry on with the standard residential mortgage rate? My fears are the BTL standard rate after 2 years fixed will be a lot higher than the residential rate I'm currently on.
Thanks for the help.
The mortgage balance is around 62k, I lived in the property initially but since moving in with my girlfriend I have been letting it out. In order to let with my current mortgage I had to pay £300 for a permission to let from Santander.
The mortgage is now on the standard rate of 4.74% and the only option they can give me is 4.69% fixed for 2 years with a transfer fee of £999 and another fee of £100 (Total £1099). The fee's are due to switching me to a BTL mortgage I believe.
Would this be worth doing or should I just make the overpayment on my current rate and carry on with the standard residential mortgage rate? My fears are the BTL standard rate after 2 years fixed will be a lot higher than the residential rate I'm currently on.
Thanks for the help.
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