Early repayment confusion

Thebigandyt

Hi all
Looking for bit of help please. We very foolishly signed ourselves into a crap rate for 7 years and I'm looking to see if it's worth paying the repayment fees and getting a much shorter term. We've a bit of money to reduce the loan also and would quite like to keep the money payment the same to reduce the years.

The calculators are great but because we are dropping the value of our loan and amount of years it's hard to compare

Current mortgage
Balence: 95000
Years left: 15
Fixed rate term left:3 years
Rate: 3.95
Monthly repayment:£700
Currently have
Saving account with £13000, interest rate 1%


Potential new mortgage, after paying Early repayment Fee of £3000 and stick in £10000 against the loan

Loan of 85k
House value £160k
3 year fixed term
Monthly repayment :£700
Rate:1.6 possibly can get much lower
Term: 10/11 years


As much as I'd hate to pay the bank £3k can anyone work out if it makes sense to get out three years early and get a remortgage? My goal is to pay of the mortgage quicker at the same monthly rate
:beer:

AnotherJoe

Forget the £10k extra payment, just compare like for like.
Back of a fag packet you'd save about 2.3% on £95k for 3 years. £6.5k. So worth paying £3k for.
Also regards the £10k, look at your pension, most likely you are better off putting at least some of that into a pension instead of a mortgage where for each £100 you would only be saving 1.6% on £80 instead of getting 2x-3x that return on £100