Remortgage or not?

bspoke2014

Hi,
thanks you in advance for any help.
Have £325000 mortgage left to pay in 15 years. 2.5% SVR; monthly £1900. Current value of house £540000.
Have other debts- difficult times a few years ago £45000; total monthly payment for that £1300.
Need some essential home improvements- £20000.
broker says he can get £395000 remortgage deal 1.8% fixed for 2 years (£2100 monthly) ie if approved will save £1000 on interest payments alone- can add to payments- at least half of savings.
Annual income £110000. (projected increase of 2-3% annually)
Queries:
1. is re-mortgaging a good idea in this scenario.
2. Does the above deal look ok?
3. any things i need to look out for?

thanks again

getmore4less

What's the rate on the deal in 2 years?

THat is usually the killer if on a base+2% tracker thats not something to give up without carefull consideration.

Any fees?

Can your current lender help with a top up preserving the 2.5% rate
(if this a tracker does it come with any benefits eg. is it Nationwide BMR)

Numbers look wrong
£325k over 15y @ 2.5% is £2167pm (£1900pm would be 17y 8months)
£395k over 15y @ 1.8% is £2506pm (£2100pm would be 18y 6months)

£325k+£45k+£20k is £390k why borrow £395k?


What rates are your other debts might be worth a trip to the debt free wanabee board and tackle those. £1300pm on £45k looks on the low side for min payments on CC, for a low cost loan should be able to clear in 3years.

With nearly £6k a month coming in there must be scope to tackle them quicker