Ditch my 5 year fix for a 10 year?

MDL74

I've about £175k remaining on my mortgage

I'm currently in a 5 year fix at 2.79%, expiring end of 2018. ERC is 2% reducing to 1% on 1st Jan 2018

I'm considering paying this to guarantee my payments for the next ten years - looking at 2.49% rate with FD.

I'd also like to overpay and be mortgage free in ten years if possible

Firstly is it worth me changing provider and paying the ERC?

Secondly, approximately how much would i need to overpay to be mortgage free in say 10 years?

I'm fairly risk averse and don't see these low rates remaining this low for many more years

AnotherJoe

Are you a high rate taxpayer?

Boredatwrork

What is your LTV, how close are you to the next one?

Obviously guaranteed payments are a good thing, but many people opt for short terms until they hit the 60/65% best deals.

If you are making overpayments, also weigh in how much, if its 10% a year max allowance does that mean by year 6 you can only put in far less than you may want too, thus extending your term?

Food for thought, also check out Yorkshire building society they can possibly beat your current deal (fee free). Good luck

getmore4less

£175k 10y @ 2.5% £1650pm

MDL74

AnotherJoe wrote: »

Are you a high rate taxpayer?

No

Boredatwrork wrote: »

What is your LTV, how close are you to the next one?

Obviously guaranteed payments are a good thing, but many people opt for short terms until they hit the 60/65% best deals.

If you are making overpayments, also weigh in how much, if its 10% a year max allowance does that mean by year 6 you can only put in far less than you may want too, thus extending your term?

Food for thought, also check out Yorkshire building society they can possibly beat your current deal (fee free). Good luck

It's less than 50% - will look at Yorkshire but still wondering whether to ditch my fix in favour of a longer term one or not

Basically hedging against a medium term rate rise

Boredatwrork

Secondly, approximately how much would i need to overpay to be mortgage free in say 10 years?

Theres good mortgage caluclators for this kind of stuff, I have a good android one thats free I think its on apple too, check it out: Karl's Motgage calculator

getmore4less

MDL74 wrote: »

I've about £175k remaining on my mortgage

I'm currently in a 5 year fix at 2.79%, expiring end of 2018. ERC is 2% reducing to 1% on 1st Jan 2018

I'm considering paying this to guarantee my payments for the next ten years - looking at 2.49% rate with FD.

I'd also like to overpay and be mortgage free in ten years if possible

Firstly is it worth me changing provider and paying the ERC?

Secondly, approximately how much would i need to overpay to be mortgage free in say 10 years?

I'm fairly risk averse and don't see these low rates remaining this low for many more years

lets do some numbers on top of the previous "it will be about £1650pm to pay off in 10 years"


£175k 2% ERC £3500.

17months till end of 18
£175,000 @ 2.79% £1650pm £153,469
£178,500 @ 2.49% £1650pm £156,381

Still £2,900 behind if you switch

wait till dec you have £168,755 and a 1% fee

£168,755 @ 2.79% £1650pm £153,469
£170,443 @ 2.49% £1650pm £154,708

only around £1,250 behind now.

don't forget this is just the ERC you may have other fees to add in.

from those you can work out what short term rate rises you are trying to protect against.