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Stuck between 2 mortgage deals
Hambo1
Posts: 4 Newbie
I am currently looking at two different deals to remortgage my home:
1 - lower monthly payment & reducing term by 3 years, with different provider.
2 - same monthly payments as paying just now & reducing term by 1 year.
2 year fixed deal (different interest rates) for both but at the end of the 2 years we will owe roughly the same overall............how does that work and therefore am I just as well staying with my current provider?
1 - lower monthly payment & reducing term by 3 years, with different provider.
2 - same monthly payments as paying just now & reducing term by 1 year.
2 year fixed deal (different interest rates) for both but at the end of the 2 years we will owe roughly the same overall............how does that work and therefore am I just as well staying with my current provider?
0
Comments
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Are there any fees involved in either of the deals, cashback incentives etc?I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The cheaper rate per month has a £1200 fee but this is already included in the monthly payment. The current lender has no fees. Thanks0
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Post all the details rates, amount borrowed, fees payments terms etc
what you want to find out is which one leaves you with the least owing for the same cost.0 -
Current - 129195 outstanding. value of property 181000. rate 2.39% fixed 2 years with a mortgage term of 18 years. £735 per month. No fees.
Alternative - same outstanding & value. rate is 1.23% fixed 2 years with a mortgage term of 17 years. £701 per month. £1200 fees (included in monthly payment).0 -
2 year fixes paying £735pm after 2 years
£129,195 2.39% £117,464
£130.395 1.23% £115,791
If that is all the fees to change then you save around £16000 -
Do you know what your current ltv is?0
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getmore4less wrote: »2 year fixes paying £735pm after 2 years
£129,195 2.39% £117,464
£130.395 1.23% £115,791
If that is all the fees to change then you save around £1600
What sums did you do to get these figures?0 -
What sums did you do to get these figures?
Just used a simple mortgage calculator set the payment and term 2 years and it tells you how much you owe.
https://www.whatsthecost.com work fine.0 -
If you can provide the LTV of your house currently (a simple 5 minute call to your bank will tell you this), people can maybe advise a better deal if it's available. Worth a punt.0
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getmore4less wrote: »Just used a simple mortgage calculator set the payment and term 2 years and it tells you how much you owe.
How did you work out the remaining balance after the 2 year term is up? The above linked calculator doesn't breakdown the mortgage after each year. How do you arrive at the £117,464 and the £115,791.
In the process of remortgaging myself so would like to be able to do all the sums myself.0
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