Ditch my fix calculation

Loan_soldier

Hello,

I need help working out if it!!!8217;s worthwhile switching mortgages.

My current mortgage stands at 31004.82 my ERC which lasts until June 2021 is 1230.20.

My currently monthly payment is 403.02 and my term is 10 years and 1 month with a rate of 3.98%.

I have made significant overpayments since acquiring the mortgage and plan on paying it off as soon as practically possibly.

The MSE calculator states I would need to get a rate of 2.69% and the one I have been offered is 2.39% with no fees included.

How much would that actually save?

Thanks in advance,

TrickyDicky101

What rate are you paying currently? I suspect your monthly payments have not been fully adjusted to take account of your overpayments (so effectively you will pay your current mortgage off quicker than the quoted 10y1m) - unless you have a very high rate of 9.7% pa.

Loan_soldier

Sorry I forgot that !

3.98%

getmore4less

Easyish way to work it out is add all the costs and use the same payment and make the end number the same or just use the rates you have and look at the date you go ERC free

http://www.whatsthecost.com/mortgage.aspx

As not full years you can use the calculator with the detailed month by month view and look at June 21 amount owing.

£31,000 3.98% £403pm June 2021 you owe £18,524

add ERC

£32,230 2.69% £403pm June 2021 you owe £18,766

so that MSC rate is wrong as by the same date you still owe over £200 more


£32,230 2.39% £403pm June 2021 you owe £18,504

save £20.

if you are overpaying you won't save anything eg 500pm

£31,000 3.98% £500pm June 2021 you owe £14,493
£32,230 2.69% £500pm June 2021 you owe £14,574



Something else is wrong because £31k over 10y at 3.89% is £314pm not £403pm.