Fixed rate ending - staying with current mortgage provider

getmore4less

lizrow wrote: »

Thanks for replying GM4L.

Lots of things to consider. What would be the difference in doing the 2yr fix and save over the reduced term fix for 3yrs? Isn’t the 2yr more risky? What if I can’t get the same or better deal? Would it not be worth the extra year of certainty?

Cheers

Without the rates you can get, 2y,3y fixes or a tracker and your max cashflow I can't quantify but over such short terms on a low amount there is not a lot of interest anyway.


woops : I missed your trying to pay it off in 3 years based on the 4% and assuming you have the cash flow


£37,300 4% over 3 years is £1,100pm total interest £2345

do you have £1,100pm to put to this project?

over 11 year paying £350pm the interest in the first 3 is £3,984

on the 2 year fix with max over payments and a lump at Y2 that narrows the interest paid gap, getting a lower rate would help a lot.


which lender are you with?

if you have the cash now you can overpay at product switch.

lizrow

I have £700pm I could pay towards the mortgage right now, and each year I will pay off either other borrowing or put into savings the bonuses and extra overtime I get. I get two bonuses a year plus because I’m paid every 4 weeks, I get a 13th week payment.

So I guess spread through a year, yes I could afford the 3yr idea.

I’m doing a check with LAndC this afternoon for shared ownership - see what they say.

I’m with LBS.

kingstreet

Right.

Leeds shared ownership products never used to permit overpayments at all, so the 10%pa facility is a change in the last few years.

Ask them if it remains 10%pa after your fix ends on 31 October if you don't immediately opt for a new fixed rate.

lizrow

I’ve already done so and once the fix rate ends then I can overpay whatever I fancy

anna42hmr

looks like you may be able to get an indication from Leeds BS about what deals you can get online already, so may be worth you taking a look online before your call with them so you have figures to compare other bank/building society offerings with. It only shows if do not want to change anything like the term, but could give you some sort of indication as to what will be available to you

https://www.leedsmortgages.co.uk/LendingProductMaturity

lizrow

Hia Anna, thanks for the link.

I’m a bit nervous to start using the tool on it! It looks like a “start using this and there’s not going back” type of thing lol.

I’ll get my account number tomorrow though and have a wee look