13 years remaining, remortgage soon, opt for 10 year fixed?

oellph

getmore4less wrote: »

LTV already under 50%, this is an end game play, not a starter.

best short(2y) term rates are around 1.5 this is 2.59.

£86k over 10y

2.59% £814.25pm £11710 interest
1.5% paying £814pm £6292 interest, paid off in 9.5years
2% would be £8676 interest. (9y9m)

Throw in some fees and the cost of the 10y might be within acceptable range for the certainty.

The 2x5y fix with 1 fee might be a compromise as the overpayment in the first leg will give a safety margin

Thanks for the figures. Renegotiating + fees, one or more times in that ten year period, seems like it reduces the benefit of lower rates, but we are keen on overpaying to become mortgage free quickly.

I've seen mixed messages about the effect Trump might have, including a lot of opinion that it will push rates higher.

Chapuys

oellph wrote: »

Thanks for the figures. Renegotiating + fees, one or more times in that ten year period, seems like it reduces the benefit of lower rates, but we are keen on overpaying to become mortgage free quickly.

I've seen mixed messages about the effect Trump might have, including a lot of opinion that it will push rates higher.

They also said US financial markets would crash for months when he was elected. They fell for about 3 hours and recovered quite promptly.

getmore4less

oellph wrote: »

Thanks for the figures. Renegotiating + fees, one or more times in that ten year period, seems like it reduces the benefit of lower rates, but we are keen on overpaying to become mortgage free quickly.

I've seen mixed messages about the effect Trump might have, including a lot of opinion that it will push rates higher.

Chances are there will be plenty of deals with no fees and in 5 years with overpayments your mortgage will be much smaller so the rate don't matter as much.

if you can pay more than the £815 needed to hit the 10y date with a decent amount of certainty I would do the numbers for a cheaper 5y deal with the same payment.

the reality is your max saving if rates don't move is in the £3k region with 5year deals and a bit more with shorter ones.