Re-mortgage or not re-mortgage?

tomkil

Apologies if this seems like a real no-brainer question but I am paying 4.99% on a repayment mortgage with a balance of £52K to pay and 10 years remaining.

Should I re-mortgage?

dimbo61

I assume you are on the SVR?
Who is your lender and what deals do they have for existing customers?
You could look on your lenders website ( look for new deals for existing customers) or give the mortgage centre a call BUT they will not give advice! They will tell you what they have available and you have to chose!!!!

Thrugelmir

Start with what your existing lender has to offer then move forward from there.

tomkil

Thanks both for the sound advice!

dimbo61

Hi Tom,
You should be paying about £551 a month on £52,000 over 10 years at 4.99%?
Now if you moved to the First Direct 10 year fix at 2.89% with a £950 fee you would be paying about £509 on £53,000 ( added the fee)
On the 4.99% SVR deal which just might go up in the next 10 years you would pay back £66,154
On the 10 year fix at 2.89% you would ONLY pay back £61,090.
You could pay it off quicker if you rounded up the mortgage payment to say £550 a month ( which you are paying now!!!)


The TSB 10 year fixed deal is FEE FREE at 3.19% and this works out cheaper by £300


Now this is NOT ADVICE I have just found the best 10 year deal from the telegraph


http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10299959/Best-fixed-rate-mortgages-two-three-five-and-10-years.html

tomkil

Cheers dimbo61!

amnblog

If it looks like advice, sounds like advice, and smells like advice (but isn't 'advice') - it must be a newspaper article.

audigex

But speaking as a non-advisor, dimbo's suggestion seems sensible to me to find a lower interest rate over the same term, with a lower monthly payment.

If you then make the same payments (ie a £42 overpayment), you'll save an extra £700 in interest and nearly a year off your 10 year term. That would be a total of £6,000 saved

Seems sensible to me. Especially if you're not currently on a fixed rate and that 4.99 could increase.