Mini-mortgage, swap over?

meister123

Hi,

I bought my house for £118,000 and I have a remaining balance of around £16,000 on my mortgage. I am currently on my bank's standard variable rate of 4.79% and I have a remaining mortgage term of just over 8 years.

I would like some suggestions and advise on whether there are any companies out there that I can switch over my mortgage to, preferable on a lower fixed rate.

From the few banks that I have spoken to, they have told me that such a small mortgage is not worth their while.

Can anyone advise on who could potentially offer me a better interest rate on my mini-mortgage?

Thanks.

Thrugelmir

You would be better off overpaying by what ever you can afford to repay it quicker. Remortgaging isn't a cost free option either. This would negate most of the benefit if you could switch.

meister123

Thrugelmir wrote: »

You would be better off overpaying by what ever you can afford to repay it quicker. Remortgaging isn't a cost free option either. This would negate most of the benefit if you could switch.

Yes that makes sense. I have also found that some of the re-mortgaging options that I have seen have fees of £1,000+, making the overall repayment in APR more than the 4.79% I am paying now.

busybe

Barclays have 5 year fix at 2.79% with no fees

busybe

first direct have a lifetime tracker of 1.79% (base +1.29%)..no fees

Jane100

Have you tried London and Country? They are fee-free, so you can get their advice without paying anything. They can check lots of lenders for you and they'll work out whether any applicable fees applied by new lenders will leave you in a better or worse position than at the moment.

meister123

Thanks all. I will have a look at these options.

The First Direct one says that it is only available to existing mortgage customers.

TrickyDicky101

Have you asked your existing lender what customer retention products they may have available for you? You might be able to fix with them and avoid some/all fees you would incur with a new lender.