Ditching our Fix

clairebeth

Hi,

Thanks so much for your calculations, and you are right, my dad emailed me to remind me of this too. I haven't accounted for the fact that simply overpaying over that period of time makes a big difference. We currently pay £915 a month plus £20 overpayment ( and I hadn't accounted for that overpayment in my calculations), and the new deal would be £1056 a month. So I've gone back and looked at the difference it would make to our current deal to simply over pay.

Current deal, paying £1056 a month, July 2019: £150,900

The way I added fees to the cost was simply by adding £6000 to the current balance or £4325 to the July 2017 balance so:

Switch now, £167300 + 6000 = new balance of £173300
Switch this July, £164575 + £4325 = new balance of £168900 ( this is based on overpaying at £1056 until that point)

So with all payments being equal this leaves us at the 31st July 2019:

Keep our deal: £150900

Switch Now: £148500

Switch July 2017 : £148375 ( this is also including an overpayment of £28 monthly to make a total monthly payment of £1056 in line with the others).

Thanks for your help everyone! What I will do now is go and increase my overpayment standing order and watch the rates for the next few months!

clairebeth

Just to add, we do plan to overpay more than this, but won't be possible until I return to work in Aug/Sept. However, once we are overpaying, it will again be beneficial to be on the lower rate.

I think we WILL wait until July so that:
1. It's nearer the end of mat leave
2. A better deal might come up
3. Improve LTV ratio
4. We may even decide to fix for longer, depending on the financial predictions at the time
5. Lower exit fees, of course!

getmore4less

With bigger overpayments the saving get less being on the lower rate is not relevant to that that difference.

What it is probably worth doing is the numbers for rates going up say 0.25% you can then make a more informed decision on waiting and if rates do go up.

clairebeth

Thanks, I'll do that.

adindas

I wonder is there any online calculator for this for easy comparison ?? Links will be very much appreciated ...

clairebeth

There is a 'ditch the fix' calculator on this site in the mortgage calculator section. There is also an excel spreadsheet. I will find the link.

clairebeth

http://locostfireblade.co.uk/spreadsheet/Index.html