My MF Mission 2015

shangaijimmy

Penalty would apply unfortunately. How long remains on your fix?

lippy1923

Until July 2017! Might ask Nationwide how much the charge would be. See if it's worth it as some of the rates I can find now are much better.

Ali-OK

Should be on your annual statement or fix documentation - often the penalty is a reducing % of outstanding balance at redemption point.

Also check the 'ditch your fix' calculator on here - it'll give you a good indication of what rate you'd need to move to still save even if you have to pay an ERC.

I'm stuck on 3.69% for another 2 years and would need to find something like a 0.96% rate to make it worth it (my charge is 5% all the way through the 5 year fix :eek:)

And SJ - at the rate you're going, you'll have closed the gap (subject to expensive little ones, or bigger one in my case!)

lippy1923

Thanks Ali - Checking the calculator now. I imagine I would need to find something like that rate as well.

lippy1923

Looks like I will stick this deal out until 2017 lol

I think my rate is the same as yours Ali. Not horrendous but there are now better rates out there. There wasn't at the time though. At least I got £400 cash back at the time of taking it out, didn't pay a product fee (some of them are over £1k :eek:) and don't have to pay more fees and swap about every 1-2 years.

Ali-OK

You and me both then!

Yes, I've been looking at 2.34% rates for another 5 yr fix and have to work out too if it's cheaper overall to pay a product fee or not for a slightly lower rate than that ...often not once you get below £100k.

But all we can do til new fix time is keep slaying the dragon and hope rates are still low then too

lippy1923

Yep.

To be honest I was happy with the fixed monthly payments when I took it out. They are well within my budget and I was happy to fix and not have to care/ worry for the next 5 years.
Obviously I would like to reduce it now, but it's not the worst thing in the world. I'm just thinking myself lucky. I brought when house prices were still low from the 2008 crash and I have only ever known 0.5% base rates throughout my mortgage life.

Could be worse and being stuck with a mortgage like my parents in 1989 with rates like 15% +

Ali-OK

I remember the days :rotfl: A whippersnapper at 21, 3 years into one of those lovely endowment mortgages and a 'discounted' rate (all the rage back then!). The horror (and shell suits and perms) :rotfl:

hiddenshadow

Finally found your diary (after seeing your posts on various other ones for a while )

We also got married in August (2013) - good month for a wedding anniversary!

Well done with the consistent £500 OPs. And your EF is impressive - we had something like that before we went and bought a house. I keep thinking we should up our EF (which is ~5k now) but then I want to OP instead!

We're re-fixing this month for 5 years at 2.39%. Could have gotten 1%-ish if we'd done a 2-year fix but I'm hoping this is our last mortgage fix ever. And I'm fairly sure rates will go up sometime in the next 5 years, so not too bothered about "losing" the 1% difference in rates. As you say, the payments are affordable, and with OPs you're still ahead of the game.

lippy1923

Great to have you on board Hiddenshadow.

Yeh August is a good month Can't believe we didn't have any rain though. It literally rained all week leading up to the wedding, stopped and the sun came out on the day and started raining again the next day lol. We were very lucky.

Thank you. It has taken a long time to get the EF where it is today but I now feel secure knowing if I lost my job I could get by without worrying. There is possible redundancy in the next year at my work, so at least I have this.

I know what you mean about savings/OP. Some months, (like this one!) I don't have enough to do both. I make OP a priority now. £5k is a good buffer to have. Well done

So jealous of your 5 year fix. I'm stuck on a 5 year fix at 3.69% I think. Not great, but could be better.

Wow, so your goal is to finish and be MF in 5 years! Great target. Very impressed to see how much your mortgage has come down in the last couple of years. I look forward to hearing your progress.