Fixed Term Coming to an End - Do I Pay-off Lump Sum or Remortgage?

Gravy0

My mortgage term is 2 years and 5 months but my fixed-term ends in 1 year and 5 months.
It is a repayment mortgage.
My interest rate is 3.29%.
My outstanding balance is £17,531.
I can overpay 10% per year without incurring any penalties (current cost of ERC is £900 but reduces by about £28 per month).
I have savings in a 1% interest ISA of £8,500.
The current SVR is 4.29% (but I'm guessing that will have risen in 17 months).
I currently pay £628 per month on my mortgage and could probably afford about £20/£30 more as an absolute max.
Salary - £21,873 and I'm 41 and single, no dependents and no loans or credit card/store card debts (not sure if these are relevant but thought I'd give you as much info as pos. lol)

This is my plan (but I don't know, and can't find anything out about, what happens when my fixed rate comes to an end other than I go onto SVR - I mean, could I get another 1-year fixed mortgage? Would that be sensible or stupid?), ....so my plan:

Overpay £1500 now as a lump sum (when I've done this before they then reduce my monthly repayments so in my head that kinda cancels out the overpayment) and then ask the lender to add the remaining £250 that I'm allowed to overpay onto my monthly repayments for this year.
And also pay a £50 fee to have my term reduced by, I don't know, say 3 or 4 months (scandalous that I have to pay to reduce my term!!!).

Continue to pay my monthly repayments until Aug 2018 (when fixed rate ends).

So far does this sound sensible or not???

Then in Aug 2018 instead of going onto the SVR, just use my remaining savings of £7k to pay off the majority, if not all, of the mortgage, penalty-free as not in fixed-term, so no ERC (is this correct? Another thing I can't find anything about!!).
And if the remaining amount is slightly more than £7k just pay the SVR rate for the few months it takes to clear it.

Hope that all makes sense.

Does this work? And is it the best use of my savings? Anyone with any better/more advised ideas?

I just want to be mortgage-free ASAP.
And once I'm mortgage-free I'm going to bank what I would have paid on my mortgage (£600) for about 6-12 months to build my savings back up before enjoying being mortgage-free.

Ideas/comments welcome please.....

getmore4less

Look at the numbers.

start with leaving alone

£17,531 @ 3.29% paying £628 for 17 months

left £7,453 @ 4.29% 1y £636pm or pay it off from you £8.5k savings leaving £1k

interest £600 ssh

......................

then overpay the max with reduced payment

£15831 @ 3.29% paying £567 for 17 months

owe £6732 still have enough to pay it off.

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if you can keep the payment the same and overpay monthly £141(use the savings).

in 17 month owe £3221. interest £450 ish.

........................

if you paid 1700 and reduced term to make it end in 17m. payment would be £955 and around £390 interest

saving around another £60 with that £50 fee £10!

also loss of the savings interest.

=============
Could do a more accurate calculation but it looks marginal reducing the term will help save anything.

if access to the savings will incur a penalty that may change the numbers.

What ever you do you will have the money to pay it off when the fix ends.

Gravy0

Ok, so I can pay it off one way or another at the end of the fix. So if it were you, which would you do? This sounds like best option to me:

"if you can keep the payment the same and overpay monthly £141(use the savings).

in 17 month owe £3221. interest £450 ish."

Have I read your calcs right?

Cheers for your response btw

getmore4less

woops I got that one wrong, used the wrong starting amount and the monthly overpayment will go down at some point (new 10%).

if you can keep the payment the same and overpay monthly £141(use the savings).

in 17 month owe £5,002.56 interest £540

another option is overpay the max and keep the payment the same if they will let you some lenders seem to be stopping this option.

I also forgot there will be another 10% overpayment to come with 17month to go, when will that be?

need to rerun all the numbers again to see how much reduced term gives you.

Gravy0

If I repay max now they'll reduce my monthly payment cos they say I'd then b overpaying further.
Next 10% overpayment will be Jan 1st 2018.
Cheers