Ending Mortgage Deal Early

Chris1418

Hi all,



I am new to all of this so please bear with me. Ideally looking for some words of wisdom.



I took a 5 year fixed rate with RBS @ 5.89% back in June 2014, I thought I was free to leave this deal in June 2019 but according to RBS its Ooctober 2019 as they add on 3 months. I've just had planning permission approved for a rear extention and I am now trying to source the best option to finance this. Through a remortgage or a personal loan. Completely aware that my rate is very high and cannot wait for June when I can start to shop around for a new deal, but, I wondered if it makes sense to do so now and incur the early settlement charges?



I have looked through the MSE site regarding mortgages, remortgages and so on, the rates at the moment are so much lower and would save me a fortune if I were to switch. Having contacted RBS I would pay 1% of my outstanding mortgage in early settlement fees and I'm wondering even at that is it worth shifting now or staying put.



Mortgage: £136,962
House Value: £180,000
Term: 25 years


I understand these rates are LTV dependant etc. I am swithering as to whether remortgaging for the extension is the best option for me as a rseult as it will take me back into the high LTV bracket. I am doing most 80% of the work myself as a builder and was considering plan B of a Home Improvement Loan over 10 years for this. Rough calculation last night shows £20,000 over 10 years with Tesco Loans at £250 per month


Any advice appreciated.

Chris

sammyjammy

1% isn't a huge amount. How much more would you be looking to borrow? £20k?

If you can get and comofrtably afford the personal loan I would go for that, if you add it to your mortgage you will be paying an awful lot more over the longer term.

Have you looked around to see what kind of rates you will get on a new mortgage if you did it now?

How accurate is the valuation? If you could keep it under the 85% you will get better deals.