We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Mortgage - Stick or Switch?
Cotta
Posts: 3,667 Forumite
Hi All,
I have around £66k left on my mortgage at a rate of 4.69%. The renewal is not until February of 2019 with an early resettlement charge of 5%. I recently spoke to my mortgage broker in passing when I met him by chance whom I feel gave me poor advice. He suggested I pay the resettlement charge and move mortgages due to the imminent interest rate rise.
Do anyone else think this is good advice from the broker?
I have around £66k left on my mortgage at a rate of 4.69%. The renewal is not until February of 2019 with an early resettlement charge of 5%. I recently spoke to my mortgage broker in passing when I met him by chance whom I feel gave me poor advice. He suggested I pay the resettlement charge and move mortgages due to the imminent interest rate rise.
Do anyone else think this is good advice from the broker?
0
Comments
-
Probably not a lot in it with 16month to go.
Switching now could protect against rises if there are any.
What's your full term and LTV?0 -
getmore4less wrote: »Probably not a lot in it with 16month to go.
Switching now could protect against rises if there are any.
What's your full term and LTV?
House valued around £90k.0 -
Any further information on this?0
-
Hi Cotta
If your ERC is 5% of original balance and that is fixed throughout your term, it is highly unlikely you will recover that if you were to break out of it. However, interest rates are a lot lower than they were formerly, and for a new 5 year rate, you would be looking around the 2% mark for a new rate at that LTV.
Depends what is important to you? Paying the ERC and having long term stability or not paying the ERC and just riding it out until it falls off its fixed in 2019.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, 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 advice0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.6K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards