Remortgate or not

getmore4less

what I don't understand is why the £24k is on 13% as there are plenty of lenders with good rates.


Doing some more numbers to give an idea what the high rate and low rate over longer term cost.

£24,000 13% £420pm interest £13,618

if you can get a rate of say 5% and pay the same
£24,000 5% £420pm interest £3,468

that's a massive saving

if you pay less (make it around 8 years)

£24,000 5% £305pm interest £5,143

£115pm to spend but ends up costing nearly £1,700 extra interest

spread it out over 24 years on the mortgage

£24,000 5% £144pm interest £17,060

that's more than it costs now.

A lot of loans are limited to 5y representative rates around 3%

£24k 3% 5y is £431pm interest £1,874