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what is 1.5% worth ? Which calculator?
wimmer
Posts: 21 Forumite
I would like to find out the amount I would save over 5 years, if I switch £36000 from 3.89% to 2.49%, so I can see if it outweighs the early payment penalty on the 3.89 mortgage? I get the saving out as £168??? over 5 years. Thanks for any help.
I Should have added that redemption fee is £1086 with current lender and no setup costs.
I Should have added that redemption fee is £1086 with current lender and no setup costs.
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Comments
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If you are saving 1.4% over 5 years your early redemption penalty would have to be fairly heavily to stop the maths working.
A 3% fee would see you in profit in the third year, a 5% fee sees you in profit in year 4.
If you are looking for an online calculator to work it out to the penny - that would worry me.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Have you considered all the fees involved - ERC is (probably) the most important but also would be any associated product fees and/or valuation fees in switching mortgage.
Is the mortgage on a repayment basis and does the 5 year anniversary represent the maturity of the mortgage (ie all outstanding capital needs to be repaid by this date) or is it simply the expiration of the product term (ie so the mortgage is actually being taken out for full repayment over 25 years or some other term)?
Who is your current lender? Would you be seeking a new product from the current lender or a move to a new lender?0 -
Is this what you're looking for? http://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculatorLet's settle this like gentlemen: armed with heavy sticks
On a rotating plate, with spikes like Flash Gordon
And you're Peter Duncan; I gave you fair warning0
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