what is 1.5% worth ? Which calculator?

wimmer

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.

amnblog

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.

TrickyDicky101

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?

benjus

Is this what you're looking for? http://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator