Mortgage suggestions please

Steviewonder1970

In December, I will be considering moving my mortgage. I will only have £13K outstanding over 5 years. I currently pay about £250 per month but I can afford to pay around £400, so i would like to reduce the term to 3 years.

I'm currently paying 8.99% (10 year fixed rate). Which has hefty redemption penalties. So 'm waiting till the end of the year when the redemption penalties have passed. However there will still be 5 years left on the mortgage. I want to reduce this to 3 years by paying more.

I have written to my mortgage supplier to ask if there will be any additional charges if I choose to move, or if they can offer me a better deal.

If i move mortgages I will be looking for a fee free deal as it's a relatively small debt.

Any suggestions as to the best and cheapest way of tackling it?

Any help or advice greatly appreciated.

herbiesjp

Your situation is all about minimums:

Minimum term for mortgages mostly 5 years
minimum amount for mortgages mostly 25k

You will need to find a fee free mortgage for 25k over 5 years, that will allow you the flexibility to pay back immedialtely the extra money you have borrowed, but also allow you to make the regular monthly overpayments that will allow you to pay your mortgage off that much more quickly.

lisyloo

Try looking at EGG.
They have low fees and an introductory rate of 4.24% (and good ongoing rate too).

You will need to take out the minimum £25K and then pay back the rest the next day.

Fairdo_2

Likewise a lender like One Account would do similar for you. Pay off extra borrowing (surplus to requirements straight away) and benefit from 3 month Discount or 12 month Discount.

Some lenders (like C&G) have moved away from Free everything at lower amounts as they would never Re-Coup the money, so some have £50,000 minimums for completely Fees Free. Just look out for this if you search for yourself. Or get a friendly Broker to do the searching for you!!!

lisyloo

I cannot find any information about the one account discount.
Was it withdraw?

If I'm missing it then I'd be grateful for a link - ta.

cheghead

Steviewonder1970 wrote:

In December, I will be considering moving my mortgage. I will only have £13K outstanding over 5 years. I currently pay about £250 per month but I can afford to pay around £400, so i would like to reduce the term to 3 years.

I'm currently paying 8.99% (10 year fixed rate). Which has hefty redemption penalties. So 'm waiting till the end of the year when the redemption penalties have passed. However there will still be 5 years left on the mortgage. I want to reduce this to 3 years by paying more.

I have written to my mortgage supplier to ask if there will be any additional charges if I choose to move, or if they can offer me a better deal.

If i move mortgages I will be looking for a fee free deal as it's a relatively small debt.

Any suggestions as to the best and cheapest way of tackling it?

Any help or advice greatly appreciated.

25k is the lowest on mortgage so how about a personal loan. should get one for 5.8% and that is fixed generally with no fees (dont take the payment protection thou). In the last 12-18 months you could transfer the balance to 0% credit cards and save a bit more.