I'm on a good SVR, so should I Re-Mortgage???

glock339

I unusually have a bit of spare time on my hands this week so thought I'd check if I have the best possible mortgage deal for my circumstances but struggling to decide what to do for the best so I'm looking for other opinions if possible please ::): Hers my current details:

30 Year mortgage (20yrs to go)
2.24% (1.49% above base rate since 2014 when fixed rate ended).
Paying back £299 per month (Plus I over pay aprox £330 per month)
£58,200 left to pay off Mortgage.
Property worth aprox £140,00/£150,00 ish according to Zoopla.


I've been to a Mortgage broker who agrees I'm on a pretty good deal already & the best alternative he could find was if I wanted the security of switching to a 5 year fixed rate:

Remortgage - £58,200 0ver 20 years
2.09% (5yr fix then 4.75% SRV)- £296.91pcm – No arrangement/valuation or solicitors fees along with £300 cash back – Total to pay £17550


Obviously after the 5yr fixed term I'd need to switch away from the 4.75% SRV. I don't like the thought having to hope I can find another good deal in 5yrs time. But then I'm also thinking that if the mortgage deals are worse by then it also means that the interest rates must have risen & my current 1.49% above base rate deal would not be so great anyway by then if that makes any sense :beer:

AnotherJoe

I would stay as you are. Next likely base rate change is down.

Thrugelmir

Which lender is giving you 1.49% above base as an SVR?

getmore4less

Plenty of follow on trackers we're at these rates and better.

Will you keep paying 630pm?

paid off in less than 9 years

2.09% for a 5 year fix looks high but small mortgage fees can be a factor.

If you want to secure have a look at the Coventry 10y deal 2.25%

somethingcorporate

getmore4less wrote: »

If you want to secure have a look atthe Coventry 10y deal 2.25%

:T I would suggest the same.

glock339

*

AnotherJoe wrote: »

I would stay as you are. Next likely base rate change is down.

Do you think? Obviously nobody has a crystal ball but everyone seems to keep telling me they're only going to go up.

Thrugelmir wrote: »

Which lender is giving you 1.49% above base as an SVR?

Post Office (Bank of Ireland), my original 5yr fixed term with them was around 5.8%, which was the lowest rate I could get back in 2009 on a small deposit.

getmore4less wrote: »

Plenty of follow on trackers we're at these rates and better.

Will you keep paying 630pm?
paid off in less than 9 years
2.09% for a 5 year fix looks high but small mortgage fees can be a factor.
If you want to secure have a look at the Coventry 10y deal 2.25%

Yes unless as long as my finances stay roughly the same I intend to keep the over payments going until I’m mortgage free hopefully.

The best mortgage the advisor showed me had: no arrangement fee, no valuation fee, no solicitors fees, no broker fees (plus £300 cash back), I don’t think there’s any other fees but please let me know me if I’m missing anything.

The Coventry deal sounds VERY interesting as it’s only 0.01% higher than my current rate & like you say if I keep up the overpayments it should hopefully do me until completion so thank you very much for the suggestion! I’ll check it out.

somethingcorporate wrote: »

:T I would suggest the same.

Thanks for the comment.

owen_money

Unless its a tracker, if you fix you will be limited to the amount of over payments you can make and the ERC might kick in.
If you do a 10 year fixed deal you wont be able to pay much off PA.

It depends how quickly you want to pay it off. I wanted to and will pay mine off in 2 years so did a tracker as I can overpay as much as I like, but then I do overpay £1800 pm

getmore4less

No ERC on the 10y Coventry after 5 years

glock339

owen_money wrote: »

Unless its a tracker, if you fix you will be limited to the amount of over payments you can make and the ERC might kick in.
If you do a 10 year fixed deal you wont be able to pay much off PA.

It depends how quickly you want to pay it off. I wanted to and will pay mine off in 2 years so did a tracker as I can overpay as much as I like, but then I do overpay £1800 pm

Yes I definately do need to take ERC’s into account thanks.

getmore4less wrote: »

No ERC on the 10y Coventry after 5 years

Excellent thanks again for the great info, hopefully I’ll get some time later on today to look at their T&Cs properly.

If I can’t over pay for the first 5yrs I could always save the money to use as overpayments after the ERCs have passed. I suppose I should also work out how much more interest not overpaying those 5yrs would cost me while trying to take into account the likely savings interest. Or at least attempt to as I’m not exactly the worlds best number cruncher!

getmore4less

There are a couple of threads covering this Coventry deal.

dimbo61

If your not allowed to overpay then consider saving into regular savers each month.
Nationwide do a 5% regular saver