Mortgage Rate

Boredatwrork

getmore4less wrote: »

you can't use ball park numbers I have seen deals where the break even was around £80k and in some cases well over £150k.

A very rough guide on the savings is amount borrowed * (rate difference) * (length of fix).

I say rough because if you look at an example the real numbers are differnt

£100k @ 2% 5y fix 25y term £423.85pm

if the alternative was 1.8% with £999 fee.

rough is £100,000*0.002*5= £1000. (pay the fee you save £1)

real is add the fee make the payment the same see what's left after 5 years
£100,999 1.80% £423.85 £83,913.12
£100,000 2.00% £423.85 £83,785.00

better off not paying the fee by £128.12

The break even mortgage for that rate(2%), difference(0.2%), fee(£999) fix(5y) and full term(25y) is closer to £113,300

change any one of those and the breakeven amount changes

I don't disagree if the Maths add up obviously, I was saying it just to provide an idea on what you can rule out mortgage rise more or less at a first glance.It can be misleading with so much on offer.

jonomassey

I've got a better deal that I was on, 1.59% fixed for 2 years, LTV 70% ish with help to buy roughly 3 years to run. Product fee was £999. Outstanding mortgage £178k. Current deal was 1.89%

Boredatwrork

jonomassey wrote: »

I've got a better deal that I was on, 1.59% fixed for 2 years, LTV 70% ish with help to buy roughly 3 years to run. Product fee was £999. Outstanding mortgage £178k. Current deal was 1.89%

I'm currently on a 1.59% 2 year fee free LTV 65%. I doubt you can get close to that as a fee free now, looking round as I said in an earlier post few free you are starting around 1.79%ish

Thrugelmir

jonomassey wrote: »

Outstanding mortgage £178k.

With a balance that large. Lenders will see the opportunity to profit in the longer term. Not all about today.

ValiantSon

Addd wrote: »

My current rate is 4.89% I reluctantly got a 5 year fixed. Id put 10% down on a £90'000 house.


Can all these offers on Uswitch really be around 1.5%? Almost seems worth paying an early repayment charge just to get that deal. Im hardly paying any of my mortgage off currently with my payments. Mostly interest. it only comes down when I overpay which I try to do as often as I can.

If you are thinking of doing that then you might want to use this calculator. https://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator

Don't forget about new product fees, however.