Remortgage help or just try and pay it off??? Help

getmore4less

If they are still calculation annually what balance is that based on and how do they handle overpayments.?

aj9648

Ok so been in touch with Britannia and I now have exactly £30k to pay off. If I paid off today the erc is 2% and this falls to 1% after 1st may 2017.
If I paid off any balance after the 5years finishes i.e. After 1st may 2018 I can pay fee free and a £35 exit fee.
The daily interest at the moment is £2.30
I have £10k I can pay off today but can't work out if this is better to do or wait till 1st may or just way till the 5years has finished - driving me nuts!!
Any mathematicians help me out pleas with this dilemma!!

getmore4less

£10k erc is 1% more than 1st may so £100.

£10k is 1/3 of your debt so interest is £2.30/3 =77p

Now till 1 may is 84days which would be £65 in interest.

Which is close enough to what I said in post 9 for 3 months worth £69.75

90 days would have been £69.30

aj9648

Ok thanks very much

getmore4less

There should also be a new penalty free overpayment allowance at some point.

aj9648

getmore4less wrote: »

There should also be a new penalty free overpayment allowance at some point.

Only after the 5 year fix finishes

getmore4less

don't you get the 10% a year option?

aj9648

getmore4less wrote: »

don't you get the 10% a year option?

Already paid in Jan

strawberries1

erin110 wrote: »

I know Britannia product range quite well.

Something to mention to you is with Britannia your CONTRACTUAL payments will have reduced but your term will stay the same. Say your initial contractual payment was £500 but its now £260, to continue to pay the £500 that you were comfortable with you would have to OVERPAY £240 per month eating into your 10% allowance. What you can do is contact them and ask to reduce your mortgage term. This way they will increase your contractual payment back up to £500 allowing your to chip away at the capital quicker without using so much of your 10% allowance. I think it costs around £50 to do a term change and you can remind on your current product.

Erin110 isn't the overpayment figure 10% of the remainder of amount owed + interest? If that's the case the overpayment figure only goes down by reduction in the debt and can't be eaten into in the way you've stated above? I'm really trying to get my head around this.

Eg OP has £30,000 outstanding; this means he can over pay by £3,000 in a 12 month period ie £250pm. Whether his contractual monthly payment is £260 or £500 he can pay an additional £250 every month. Have I mis-understood this?