Remortgage help

blueflag81

Hello Everyone I hope someone can be of help to me because when it comes to mortgage's I do not have a clue to be honest. Having read in the newspaper recently about changing my mortgage to get a better deal even if it means a early repayment charge it could be to my benefit, Something I like the sound of but I am afraid of making a mistake and making the wrong choice. I brought my house back in 2006 for £134,000 with a £34,000 deposit, My current mortgage is with santander and has 17 years to run amount outstanding is £80168.55 my fixed rate deal expires 3/11/16 and I am on a 4.24% interest rate. Total month payments are £552.14 and the early repayment fee is £4008.43. Current value is £142,775 So I would like to know should I switch.
I am thinking It would work out cheaper for me but don't know for sure any help I get with this would be great Thankyou In advance for taking the time to read my post


kind regards

paul love:)

amnblog

Your early repayment charge is 5% and you have just over 18 months to run on your deal before the charge period expires.


Even to break against the early redemption penalty you need a rate around 3.33% lower than your current rate.


This means that, to benefit, you will need to find a rate well under 1% - that is not going to happen.


Leave things until early Autumn next year and consider your options then.

HappyMJ

As above...start looking around a couple of months before the expiry of the fixed term.

Me personally I hate switching due to the stress of having to get documentation together (I'm a self employed applicant) and proving I earn what I say I earn so I look at the revert to rate. My revert to rate is 4%. Some mortgages have much higher rates and I would avoid them even if they appear cheaper in the short term.

You circumstances could change when it comes to remortgaging and you could be forced to stay on a bad product as you cannot remortgage.....anyway just my own personal opinion.

Thrugelmir

Following on from the comments above. If you can afford to make overpayments to the mortgage to reduce the debt owed. Don't have to be large. Every little bit helps in the longer term. As the mortgage only has to be repaid once.

blueflag81

thank you everyone for your advice it really helps, It was in the back of my mind that I should wait until the end of my current fixed rate period and now I know that this is for the best

regards

paul love