Mortgage advice required

bt71

I regularly look on the site for tips but this subject is a bit of a minefield for me..
I have been on a Halifax Homeowner Variable Rate mortgage since 11th February 2011. The interest is currently 3.99% and I pay £261.37 a month. It was initially a two year tracker.
The current balance is just under £38,000 and I have 19 years and 7 months left on the mortgage.
Like anyone else I would like to pay off my mortgage asap and save interest and money in general but I`m confused by what action I should take.
Should I leave the deal as it is and pay off a more if and when I can ? If so how much can one save by doing so?
Should I seek another deal and if so, would that cost me more in interest?
I`d be grateful to anyone who can point me in the right direction.

lee111s

See a fixed rate or tracker product with a lower interest that you're paying now.

If you want to reduce the term then ask them to do so and they will recalculate the payments.

getmore4less

bt71 wrote: »

I regularly look on the site for tips but this subject is a bit of a minefield for me..
I have been on a Halifax Homeowner Variable Rate mortgage since 11th February 2011. The interest is currently 3.99% and I pay £261.37 a month. It was initially a two year tracker.
The current balance is just under £38,000 and I have 19 years and 7 months left on the mortgage.
Like anyone else I would like to pay off my mortgage asap and save interest and money in general but I`m confused by what action I should take.

Should I leave the deal as it is and pay off a more if and when I can ? If so how much can one save by doing so?

£38000 paying £261pm @ 3.99%
interest will be £14039 paid off in 16y 8 months.
That's the most you can save paying it all off today.

look what overpaying can do to the interest and the term.
£300pm £11412, 13y 9m
£400pm £7744, 9y 6m
£500pm £5877, 7y 4m


Should I seek another deal and if so, would that cost me more in interest?
I`d be grateful to anyone who can point me in the right direction.

the more you pay the lower the interest and the faster it gets paid off.

looking at lower rates you have to take into account the fees but the 3.99% is quite high these days so something better should be possible.

A broker should be able to help find but an example would be a switch to a Halifax no fee fixed rate which could cut around 1% of the rate depending on LTV

bt71

That's very kind of you both to give that advice. I called Halifax and got the information that this mortgage isn't linked to the interest rates set by bank of England. It's set by Halifax themselves.
Is there a rise in overall cost of mortgage/costs if I change mortgage provider or is it simply transferred and continued? I ask this because it's Bank of Scotland and not Halifax branches where I live. Many thanks indeed for any advice.

AnotherJoe

bt71 wrote: »

That's very kind of you both to give that advice. I called Halifax and got the information that this mortgage isn't linked to the interest rates set by bank of England. It's set by Halifax themselves.
Is there a rise in overall cost of mortgage/costs if I change mortgage provider or is it simply transferred and continued? I ask this because it's Bank of Scotland and not Halifax branches where I live. Many thanks indeed for any advice.

You should be able to switch to a lower rate with your current provider, or find a new lender with a lower rate, either of which will cost less but since you don't seem to understand the basics such as a lower interest rate enabling you to pay off quicker, and not needing to do anything with branches, I suggest you see an independent mortgage broker who can guide you through all the issues and advise on the options available to you.

bt71

I will take that advice on board. Thanks