Fix to End in 2018 - Two Sub Accounts

SuffolkGent

Hi All,

I have my own home where an extension was errected last year, which has increased the size of the home and effectively increased my equity.

I have a 5 year fix about to end and a 2 year fix which ends a little sooner.

3.09%
Deal ends 01.11.2018
Balance: Under £80,000.
ERC: 1%

2.54%
Deal ends 01.07.2018
Balance Under £29,000
ERC: 1 %

20 years 11 months to run on both. With Natwest for no particular reasos.

I would like to consider setting up a few months ahead of July or possible a few months ahead of November. In July my payable ERC drops significantly. I would consider a Fix or possibly an offset tracker to make use of a lump sum to reduce interest. On remortgage I would consider a slight reduction in time.

Thanks,

SuffolkGent

getmore4less

you don't say what your LTV is
£80k 3.09% 01.11.2018 ERC: 1% 11month
£29k 2.54% 01.07.2018 ERC: 1% 7 months

With size size loans unlikely a fee based deal will be better

you can switch 3.5 months early with Natwest but their rates are not that good. looking now their switch rate on 60%LTV is 2.69%

if you want to stick with Natwest you could switch in 3.5months and 7.5 month

Depending on LTV it might be worth thinking about a switch now with just a 1% ERC.

if we say it takes 1/2 month to set up.

if you can get a rate of say 2% you pay 1% on £109k=£1,009

you save £766

3m on £29k (2.54%-2%)+ 3.5m (2.69%-2%)
7m on £80k (3.09%-2%)+ 3.5m (2.69%-2%)

not enough to recover all the fee but a 0.25% rice in the next few months would add £109k*0.0025=£272 saving.