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Mortgage fee or not to be
Danm1285
Posts: 1 Newbie
Hi,
Looking for some help with our mortgage which is due for renewal and I am probably over complicating things!
We have £146k outstanding with 21 years left (69% LTV ratio). Our current fix ends in Sept and is currently at an interest rate of 1.74%. We over pay at £100pcm and have done for the last two years.
Our choice is between a 1.54% 2 yr fix with a fee of £999 (673pcm), or 1.94% with no fee (701pcm). The difference between the two does not pay off the difference over the fixed period- is it that simple? The £999 fee can be added to the mortgage but as we are looking to overpay is this a waste of time? Both products are with our existing lender so we could move to the lower rate now or wait till Sept for the higher rate.
Ps we are only looking at a 2yr fix as we may look to move within 2 - 5 years.
Looking for some help with our mortgage which is due for renewal and I am probably over complicating things!
We have £146k outstanding with 21 years left (69% LTV ratio). Our current fix ends in Sept and is currently at an interest rate of 1.74%. We over pay at £100pcm and have done for the last two years.
Our choice is between a 1.54% 2 yr fix with a fee of £999 (673pcm), or 1.94% with no fee (701pcm). The difference between the two does not pay off the difference over the fixed period- is it that simple? The £999 fee can be added to the mortgage but as we are looking to overpay is this a waste of time? Both products are with our existing lender so we could move to the lower rate now or wait till Sept for the higher rate.
Ps we are only looking at a 2yr fix as we may look to move within 2 - 5 years.
0
Comments
-
0.4%*2*£146,000= £1168
Close enough to need a full number crunch.
Paying £800pm fee @1.54% will save you about £100 over 2 year0
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