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Ditch my fix?

Casba11
Casba11 Posts: 1 Newbie
in Mortgages & endowments
Hi, I need some advice as the calculator on here says I will be better off buy my mortgage company says I will be 3k worse off.

So I have 132k left on my mortgage but comes with a 6.6k redemption fee. That's a 4.5% mortgage. The new rate they can offer is a 2.59 2 yr fixed taking my mortgage upto 138.6k. The calculator says I'm saving but west broom say I'm not. I'm confused. Can someone help

Comments

  • evansc1
    evansc1 Posts: 131 Forumite
    Ninth Anniversary 100 Posts Combo Breaker
    Reverts to what after the 2 yr fix?
    Length of time remaining on the mortgage?
    Mortgage - £124,903 Sept 2016-Jan 2017 OP target £1,750/[STRIKE]£1,550[/STRIKE]
  • amnblog
    amnblog Posts: 12,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You are paying a 5% charge to save 1.91% p.a. on the rate.


    Therefore you wont break even for some 31 to 32 months.


    I suspect West Brom are correct.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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