An old debate of remortgaging! advice Please

Lorfy

Hi,

My situation is this.

3.99% fixed 5 year deal ends October 2016
Mortgage £123,000
House price £220,000
Early repayment £4k

I'm thinking about remortgaging purely that I feel that when my current deal ends in 2016 that mortgage rates might be higher and I want to take advantage of the current low 5 year fixes available now.

When I use the mortgage calculator it highlights the fact I need to find a fix at 2.53% to take advantage of the early redemption charge, however this based on the remaining term left, however if I could find a fix for say 2.88% this would mean I still benefit up to 2019 on a lower fix then when my current deal ends in 2016 and rates could be higher (speculation off course but based on all theories and news reports seems probable).

I was just looking for some advice as to weather my thinking is wise in this situation or any other thoughts.

Many thanks

Lorfy

FreezingWarm

Newbie here, so please be patient…

Can I ask, How much is your Early Repayment Charge?

Its a chicken & egg situation, and depends on what you're comfortable with..Personally, I'm going through the same process with a lender that's offering a rate of 3.84% fixed for 10 years! With the interest rates only likely to go up, I prefer peace of mind and fixed payments (albeit a little higher), but again, it's on your personal circumstance. What interest rate you currently on?

fiesta04

Welcome FreezingWarm, but answers to your questions were already in the original post (PO)


F4

FreezingWarm

fiesta04 wrote: »

Welcome FreezingWarm, but answers to your questions were already in the original post (PO)


F4

Thanks- I missed the rate at the top, but note the ERC isn't on..

Lorfy, I would suggest a 10 year fix at 3.84- its lower than what you're on, and over the 10 years, you will 1) Save On What You Pay 2)Your Payments are fixed.

Interest rates are only likely to go one way, and that's up!

Hope this helps.

ytfcmad

FreezingWarm wrote: »

Thanks- I missed the rate at the top, but note the ERC isn't on..

Lorfy, I would suggest a 10 year fix at 3.84- its lower than what you're on, and over the 10 years, you will 1) Save On What You Pay 2)Your Payments are fixed.

Interest rates are only likely to go one way, and that's up!

Hope this helps.

who's doing this 10 year fix?

FreezingWarm

Norwich & Peterborough are doing a 3.84% fix, although their application process is poor (phone or in branch only).. YBS who own them offer a 3.89% fix which can be done online…

Hope this helps!