Mortgage Expiration Advide

Ibsen3

Hello,

We looking to save money on our mortgage and, ideally, go mortgage-free in the near future. As we are coming to the end of our current mortgage deal in November and still have £28,000 left to pay on it, I am looking into what we might be best advised to do. I still have the option of paying a fee-free overpayment of 10% before this time comes (approx. £2,800).

Currently, I am exploring the idea of doing nothing and thereby switching to paying an SVR. The purpose of this is to exploit what appears to be a fee-free option of overpayment. We estimate we might be able to clear around £10,000 or more around this time out of the current £28,000 that remains. Is this possible / advisable?

Thereafter, I was wondering if it was possible / advisable to switch providers for a more favourable deal. We are currently with Halifax and are very aware that their deals are far from the best. Also, with such a low mortgage and an aim of the earliest repayment possible, how many years would be best? We have been on a five-year deal which I thought was the lowest but I've heard suggestions that deals on a shorter term are not advisable. Nevertheless, there is also the matter of fees from a new provider to consider.

Can anyone shed any light on this plan or offer more advisable alternatives?

kingstreet

Remortgage to a penalty-free tracker product.

You should be able to do this without cost.

You'll have a lower rate and benefit from unlimited overpayments. There is no point paying over 4% for this when you can get under 2% instead.