Is now the right time to remortgage ?

Bessman

Here's my quandry.... I have my main mortgage (approx £65k) on a 4.49% fixed rate with Nationwide. This rate is fixed until May 2008. I have another smaller 2nd mortgage loan (approx £15k) which is on the standard variable. In the current climate, should I wait until May '08 to remortgage the whole lot or should I jump early and look to remortgage now???

cm233lh

Martin's been recommending people to remortgage asap. If you apply for a fixed rate they'll hold the offer for up to 3 months, and a variable some will hold for 6 months, or longer. (May 2008 might be stretching it) I don't know if the USA interest rate changes this advise or not.

Mortgagehero

Nationwide charge an early repayment penalty of 1.5% of the loan if repaid within the fixed period. Based on a loan of £65000 this would mean a penalty of £975! As for leaving the £15000 on a SVR until next May, this is likely to cost you around £25 per month more than if it were switched to a more competitve deal meaning over the next 7 months this would equate to around £175. Therefore you should be around £800 better off by waiting until May, more if interest rates go down but less if they go up. Hope this helps.

Conrad

Even remoing next year needs careful consideration.

The costs involved to include interim interest (most Sun reading spivvy brokers don't factor - in this cost) can mean there is no benefit in remortgaging smaller mortgage sums (under about £75000)