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Overpay or wait for new fix
Dobbo014
Posts: 5 Forumite
Hi,
I have 3 years left on a fix rate of 2.29%, I am in a fortunate position where I can overpay the maximum 10% remaining balance each year. However I am starting to wonder if I should carry on doing this with the ridiculously low rates at ~1.15%
Should I -carry on overpaying and have a smaller debt when I come to end of my term.
-Stop overpaying and ride this fix rate out then remortgage with a much smaller debt and reduced rate-massive assumption that rates will still be as low as they are now.
I have about 60k in savings which I have been using to overpay the mortgage.
Thanks in advance, I have tried calculating the numbers but it's got so confusing.
I have 3 years left on a fix rate of 2.29%, I am in a fortunate position where I can overpay the maximum 10% remaining balance each year. However I am starting to wonder if I should carry on doing this with the ridiculously low rates at ~1.15%
Should I -carry on overpaying and have a smaller debt when I come to end of my term.
-Stop overpaying and ride this fix rate out then remortgage with a much smaller debt and reduced rate-massive assumption that rates will still be as low as they are now.
I have about 60k in savings which I have been using to overpay the mortgage.
Thanks in advance, I have tried calculating the numbers but it's got so confusing.
0
Comments
-
Overpay to the 10% limit for three years, bank / save the rest and use it in three years time to reduce the LTV on the next mortgage product.
BR0 -
what rate do you get on your savings and what is the ERC.0
-
My savings rate is crap, not even sure what % I'm getting. EPC is 5% remaining balance and will be about £6500.0
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overpay to save paying interest0
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