Switch morgage but interest rates

Pike25lb

Hi first time here posting Iv got a morgage letter statement any way so over 6 years we've paid 16k and only something like 6k has come of the morgage so we with halifax standard rate and have 14 years left we have been looking about for a ltv morgage for 30,000 over 7 years fixed for 5 year we can up our payments per month there is some morgages out there 1.79% HSBC and some others they have a fee of 750 to 1000 if we stay with halifax they can offer us a 5 year fixed for 2.39% and no fees question is do we move or stay any help please thanks

Thrugelmir

Is £30,000 the amount you owe?

Pike25lb

Yes sorry we owe 30,000

Thrugelmir

If your remortgage to another lender besides the product fee. You need to factor in legal, valuation and existing mortgage ext fees. With such a small mortgage balance owing. The 2.39% on the 5 year fix does look attractive. Nothing to stop you overpaying so that you clear the balance just after the fixed period ends. Or in fact pay a lump sum off prior to taking up the fix.

Pike25lb

I don't have any morgage exit fees spoke to them and because we own nearly 70% of the house one lender did say there would not be any valuation fees just the set up fee of around 800 so suppose speak that over the 5 year how do you work the difference from a 1.7% morgage to a 2.39% over the 5 years do you know the maths for that lol

getmore4less

EDIT CORRECT NUMBERS and the rate to 1.79%

£30k is interest only

£30,000 * ( 0.0239 - 0.0179) * 5 = £900

£30k paid off over 5 years difference in interest is £1,858 - £1,314 = £473

£30k over 7 years paying same on both rates £388, difference left after 5 years £9102 - £8472 = £630

Pike25lb

So is it better to stay with 2.39 % and no fees or move to 1.8 % and 800 ish fees thanks