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Do I stay or do I go now?
jibbyboo
Posts: 262 Forumite
Hi everyone,
I'm in a little bit of a conundrum - economics was never my strongest suit so I'm hoping someone with a bit of nouse might be able to help me work out whether my calculations are correct!
My current mortgage rate is 4.4% and I'm paying around £740 pcm. This fixed term ends in June. To leave this mortgage I've calculated the early repayment charge will be £2520.
Using the MSE comparison tool, I could get a new mortgage at my 74% LTV with a 0.99% interest rate, monthly repayments would be max £380pcm.
So by my calculations, between now and June I'd be paying:
Current rate - £5920
New rate - £3040
So the saving would be £2880, which is more than the early repayment charge.
This seems too good to be true, so I thought I'd check with people who are likely to be more mathematically skilled than me! :rotfl:
Does anyone know if early exit fees are payable outright or do/ can they get added onto your new mortgage?
And finally does the MSE tool assume you want the admin fees added to the term of the mortgage?
Very grateful for your help!
I'm in a little bit of a conundrum - economics was never my strongest suit so I'm hoping someone with a bit of nouse might be able to help me work out whether my calculations are correct!
My current mortgage rate is 4.4% and I'm paying around £740 pcm. This fixed term ends in June. To leave this mortgage I've calculated the early repayment charge will be £2520.
Using the MSE comparison tool, I could get a new mortgage at my 74% LTV with a 0.99% interest rate, monthly repayments would be max £380pcm.
So by my calculations, between now and June I'd be paying:
Current rate - £5920
New rate - £3040
So the saving would be £2880, which is more than the early repayment charge.
This seems too good to be true, so I thought I'd check with people who are likely to be more mathematically skilled than me! :rotfl:
Does anyone know if early exit fees are payable outright or do/ can they get added onto your new mortgage?
And finally does the MSE tool assume you want the admin fees added to the term of the mortgage?
Very grateful for your help!
Please respond to mine and others' posts with courtesy and kindness- and I will not deliberately disrespect you. Down with the trolls!
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Does your calculation includes any lender's fees you may need to pay?0
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