Trying to calculate redemption penalty please

getmore4less

What rates are the ported + new bit and the rate of the new mortgage?

When does the ERC stop needing to be paid?

LTV on the new place?

edit:

also when the deal with the cuurent lender runs out what are their retention deals like?

jolester

getmore4less wrote: »

What rates are the ported + new bit and the rate of the new mortgage?

When does the ERC stop needing to be paid?

LTV on the new place?

edit:

also when the deal with the cuurent lender runs out what are their retention deals like?

The current fixed rate is 3.84%

The new portion would be 4.49% variable for the additional £224000

The ERC stops being in force on 30/09/2020

LTV on new property is 85%

getmore4less

Average rate with current lender is 4.2% on the full £405k with a payment of £2,362 that's a term very close to 22y ish

If the potential new mortgage is over 3 years more(25y) paying £1,485 suggests a rate of less than 0.8% which is unlikely for a 85% LTV.



Are you sure the term is only 3 years more?

What rate is the mortgage on offer, is it fixed, tracker, discount etc.

jolester

getmore4less wrote: »

Average rate with current lender is 4.2% on the full £405k with a payment of £2,362 that's a term very close to 22y ish

If the potential new mortgage is over 3 years more(25y) paying £1,485 suggests a rate of less than 0.8% which is unlikely for a 85% LTV.



Are you sure the term is only 3 years more?

What rate is the mortgage on offer, is it fixed, tracker, discount etc.

Sorry, old mortgage is 30 years, new mortgage 33 years

getmore4less

still does not add up.

30/33 years

1. £405k @ 4.2% 30y is £1980pm (not £2,362)
2. £405k over 33y paying £1,485 is a rate of around 2.42%

in sept 20 paying £1,980 on both you would owe
1. £386,600
2. £383,600

that's not enough to cover a £6k bill.

FULL details of the deals on offer would really help.

jolester

I've re-booked appointment with broker tomorrow evening as you're right that doesn't seem to add up, I've also called my current lender and asked them to put break down the information and put it in writing for me

Thanks for the information you have provided

getmore4less

there may be other reasons a change is good even if it costs a bit more on the current numbers in the short term.

one thing top look at is when will you drop LTV levels and the lenders sweet spots on rates.