Any options for better deal which would offset erc ?

lilyloo17

Hi I'm currently in a fixed mortgage with nationwide till may 2017 on rate of 4.39 ! We have an erc of 5% so approx 6800 on outstanding mortgage of 136k which is huge - but rates are so low I was wondering if any deals which could be worth switching so that would offset the erc ?
House value approx 210k mortgage 136k
Hubbie earns 25k, me 18k partime (childcare 250 per month salary sacrifice through childcare vouchers ) no adverse in credit file and not much other debt accept sofa on 0% 68 per month (have savings so clear if needed and income left after all bills 1k per month)
Any suggestions or should I just wait it out and hope rates are still low in 2 years ?
Thanks

lilyloo17

Anyone ? Especially with news of rates increasing ?
Thanks

libf

Take a look around a few lenders websites and use their affordability calculators to see if you're likely to be able to borrow what you need. Or engage a broker to do that for you.

getmore4less

lilyloo17 wrote: »

Hi I'm currently in a fixed mortgage with nationwide till may 2017 on rate of 4.39 ! We have an erc of 5% so approx 6800 on outstanding mortgage of 136k which is huge - but rates are so low I was wondering if any deals which could be worth switching so that would offset the erc ?
House value approx 210k mortgage 136k
Hubbie earns 25k, me 18k partime (childcare 250 per month salary sacrifice through childcare vouchers ) no adverse in credit file and not much other debt accept sofa on 0% 68 per month (have savings so clear if needed and income left after all bills 1k per month)
Any suggestions or should I just wait it out and hope rates are still low in 2 years ?
Thanks

To make it easy lets go with 2 years

£136k @ 4.39% say around 20years £850pm

in 2 years time you will owe £127175

add the fees
£142800 paying £850pm needs a rate below 1.764% to break even over 2 years.

(this is just the ERC if other fees the rate reuired wil be lower.