Remortgage or stick with existing

mightyreds

Hi All,

I'm wondering if anyone had any opinions on my position/thoughts before I speak to a financial advisor.

We are currently on a fixed deal at 3.79% for another 2 years (aug 2018) and have to pay a 2% fee (around £2180) if we leave it early.

We owe around £109000 on a house that's valued between £160000 - £165000 with 30 years left.

We are paying £513 a month with an overpayment of £65 per month.

My question is would it be worthwhile looking to move and take the hit on the early repayment fee for a new deal with the fees for that new deal taken into account too? we would be in a position to still over pay on the new deal taking our monthly payment to around £600-£650 a month.

I just cannot work out that with all the fees we would have to take would we be in a better position after 2 years on a new deal than it would be staying on our existing deal.

Any opinions would be appreciated.

Thanks

cahillg81

I think it would definitely be worth considering, speak to a broker who can do the costs for you and work out the real saving.

getmore4less

We are currently on a fixed deal at 3.79% for another 2 years (aug 2018) and have to pay a 2% fee (around £2180) if we leave it early.

We owe around £109000 on a house that's valued between £160000 - £165000 with 30 years left.

We are paying £513 a month with an overpayment of £65 per month

initial calc is to break even in two years

say £600pm on this deal and any new one.

current
£109k £600pm @ 3.79% in 2 years £102,634

add the ERC.

£11180 £600pm to break even in 2 years rate needs to be better than 2.732%

add £1k of fees

£12180 £600pm to break even in 2 years rate needs to be better than 2.255%

mightyreds

Thanks very much for your calculations. So may not be actually worth it unless we get a lower rate than that.

I just wasn't sure if I was working it out correctly so will speak to IFA to see if we can beat that rate and by how much by if it will be really beneficial or not.