Re mortgage - switch deals or stay put

katelina

Looking for some help

Currently coming to the end of the main part of my mortgage which is on 2.34% £66888
Also have £22247 at 2.78 till Sept 2020
LTV 45%
Have called Natwest to find out EPC which would be approx £600

Am I right in thinking I would be as well re mortgaging with a new provider considering the rates possibly going up?
Rates with Natwest are very poor at moment.

Thinking of fixing with HSBC for 5 years at 1.94% with no fees

prufrock

First of all I don't know much about mortgages and hopefully someone with better knowledge will come along and help out. However I can tell you what I would be doing....

I think this is one for a mortgage calculator. If I understand you correctly on the one hand you could remortgage now and pay £600 early exit fees (for both mortgages?) but then have a 5 yr fix at 1.94%

On the other you could continue to stay with your current provider and avoid the ERC but but stuck with 2.78% and 2.34% until September 2020 and then run the risk of rates then being higher.

I would put the remaining term into the calculator for each of your current rates and make a note of the outstanding balance at Sep 2020 for each.

Then I would put the HSBC rate into the calculator and see what the figure would be at Sep 2020.

Add together your natwest figures at Sep 2020 and minus the HSBC figure.

If there is more than £600 difference then I would think it might be a good to take the £600 hit and move. If its less than £600 difference you have to weigh up that difference between what rates might be like at Sep 2020.

My guess is that there will be a benefit to moving but I wouldn't make a decision until I had ran the sums.

I just found this site which can show you an approximate monthly outstanding balance as opposed to just the annual one:

http://www.calculator.net/mortgage-calculator-uk.html

Thrugelmir

katelina wrote: »

Thinking of fixing with HSBC for 5 years at 1.94% with no fees

Do you meet their annual income requirements?

katelina

prufrock wrote: »

First of all I don't know much about mortgages and hopefully someone with better knowledge will come along and help out. However I can tell you what I would be doing....

I think this is one for a mortgage calculator. If I understand you correctly on the one hand you could remortgage now and pay £600 early exit fees (for both mortgages?) but then have a 5 yr fix at 1.94%

On the other you could continue to stay with your current provider and avoid the ERC but but stuck with 2.78% and 2.34% until September 2020 and then run the risk of rates then being higher.

I would put the remaining term into the calculator for each of your current rates and make a note of the outstanding balance at Sep 2020 for each.

Then I would put the HSBC rate into the calculator and see what the figure would be at Sep 2020.

Add together your natwest figures at Sep 2020 and minus the HSBC figure.

If there is more than £600 difference then I would think it might be a good to take the £600 hit and move. If its less than £600 difference you have to weigh up that difference between what rates might be like at Sep 2020.

My guess is that there will be a benefit to moving but I wouldn't make a decision until I had ran the sums.

I just found this site which can show you an approximate monthly outstanding balance as opposed to just the annual one:

http://www.calculator.net/mortgage-calculator-uk.html

The £66888 is coming to the end of its deal on 31st March 2018. Its just the £22247 that will remain in a deal till 2020.
I would have to put any fees onto the mortgage as have no cash up front to put down so guessing it would be better to go for a fee free rather than a fee bearing fixed?