Mortgage free in 10 years or not?

andy_little

Hi everyone,

I am currently looking for advice on a mortgage renewal, I bought a modest house for 58k (valued at 80k now done up) my mortgage is 52k.

I'm thinking about getting my mortgage fixed for 10 years and pay it off over the 10 years at the minute i pay 250 a month over 30 years, but the rate will increase to 520 (which is affordable as i live with my partner). Is it worth fixing my mortgage and paying it off early when the rates are low and I have a bit more money spare or am i totally wrong in doubting variable rates.

Thanks for taking your time to read this and help me

choccielover

If you can lock it in I would go for it, it's certainty isn't it. And presumably you could still overpay to the 10% though I guess be careful not to fully clear and incur an ERC. (If you wanted to)

^!£$&

What would the rate be? How much can you overpay per year?

Luckyinlife

Hard to say anless we know the rates

personally if the 10 year fixed rate is comfortable for you go for it least you know you can afford it with ease

Great job at 22 with a 60k mortgage is fantastic work :]

audigex

1) What's your current rate?
2) What's the 10 year fixed rate?
3) Do you have any ERC to pay on the current mortgage?
4) Does the 10 year fix have any fees?

If you're still locked in to a fixed rate now, I'd probably be tempted to just overpay it until the end of the fixed rate first and then fix it again. But it depends on the exact figures.

With such a small mortgage, any mortgage fees can rapidly push the cost up.

andy_little

I am currently in a fixed two year deal till april next year i currently pay 3.69% percent on my mortgage over 30 years the new deal would at 3.89% fixed for 10 years i think that number is right With a product fee of £999.

Firegirl

You might not be planning to move house now but if you do in the future can you port your existing mortgage? Also ask if you can take additional lending at the same rate if you were ever to need it or if you moved.

andy_little

Well my idea was to stay put and live here for the next 10 years as i pay all the bills and my parnter has just went back work after having our baby, so she can save whatever is spair then pay off chunks each year as i can pay 10% over my mortgage without any fees then sell this house and move closer to family once the little one starts secondary school. Plus where i live now is within walking distance of my work.

Beckyy

When you say fixed for 10 years, the interest rate would be but the term of the mortgage would still be 30 years (or 25?) if I'm understanding correctly. So you would be paying it off in 10 years with overpayments?

If you're fixed until April next year I would be very surprised if it was in your best interests to switch now as you would likely have to pay an Early Repayment Charge to exit your current fix.

andy_little

Oh i was planning on switching over now. I was just assessing my full options to hand.