Should I remortgage?

Poverty_stricken_student

Hi there, Can anyone offer me advice on whether i would benefit from remortgaging my existing property. I have about 6 years remaining to pay off my mortgage which is approx £30000, in my opinion the mortgage product i currently have is the basic one, Interest rate is 7.75%. Im contemplating remortgaging but do not know whether it would be the best option seeing as i only have a few years left. Can someone kindly offer me advice on this. Just found that Leeds building society is currently offering the following. Any advice is appreciated.

Fixed5.25% for 24 months7.75% for 48 months8.8% APRNo early repayment charges£492.47£516.51

MortgageMamma

Do you need to raise any extra cash? There are some fee's free products you could look at which may be of benefit.... you would be better taking a slightly higher rate and no fee for such a small loan amount

Are you a student? what is your income status?

Poverty_stricken_student

In reponse to your message, the enquiry i made was actually on behalf of my mother her annual income is approx 10,000. She is unsure which products would be best to opt for.

MortgageMamma

IF she is sure she wishes to stay where she is and not move, and her income is going to remain stable then a five year fixed may be a good option, and if she overpays slightly she might even be able to get the mortgage paid off quicker.

She could also consider a "lifetime" tracker product. This is a product which tracks the bank of england base rate for the life of the mortgage at a certain percentage above base rate. That could be good value for money, especially if rates fall

There are lots of variables to be taken into account before the best product for your Mum can be identified, but the best starting point would be whoever her existing lender is. Give them a call and see what they can offer. I say this as some lenders are not keen on lending such small amounts over a short term, some stipulating a minimum term of 10 years. A product transfer with existing lender is highly likely to be the best option, since it does not involve further legal work.