Re-mortgage early or stick until fixed period ends

sysadmin

What would you do ?
(im going to see a mortgage broker for proper financial advise, just want to see what others would do in this situation)

We're currently in a fixed period mortgage until May 2020. We have our original mortgage and a secured loan that we used to create a loft extension.

Our interest rates are as follows:
Mortgage 2.69%
Loan 5.54 %

Our current outstanding balance combined is £150,925.57
The redemption figure of this with the early charges would be (at the end of March) £156,575.58

We currently have the following terms left
Mortgage 25 years 2 months
Loan 24 years 6 months

I've been playing around with mortgage calculators online and it looks as if I could potentially remove 5+ years off the term by paying a small amount more (£30) per month.

For example, the house is now worth (according to an estate agent) between £260,000 - £270,000 this gives us a LTV of roughly 60%

We could for example, switch now, for another 5 year fixed (HSBC 1.74 fixed for 5 years) and pay £779 per month (paying £756 now) and this would bring the term down to 20 years rather than 25.

What do you think? Is it worth paying the fee and getting out of that high interest rate or are we better of sticking it out. I'd be concerned that 18 months ago the highest the mortgage was at was £156k and that we would be going back to the same figure...

new_owner

How much is the loan?

sysadmin

initially 18 months ago it was £40k and at the time the mortgage part has £116k left

new_owner

holly s**t thats an expensive loan. Thats over 70k repayment

so the cost of the loan over 20/25 years far outweighs the cost of the 6k

If you cannot clear the loan then yes... Re-mortgage so the loan is covered by the mortgage and over pay