Small outstanding mortgage best rate?

Moonwolf

I have a small (£20,000) outstanding mortgage with 8 years to run that I am currently overpaying (total payment £450 a month). It is with the Nationwide on their BMR, ie 2.75%.

I was recently told by a know it all that I am paying too much. I've searched remortgages and either the fees wipe out the advantage or for fee free, the restrictions and penalties for overpayment are punitive so you are all but forced to carry on with a higher rate at the end.

A couple look quite good then they have small print that means there look to be extra charges at the end.

At best I might save £100-£200 over the remaining life of the mortgage assuming there isn't a catch

Am I missing something?

getmore4less

What will nationwide give you as a no fee retention deal.

JayCeeEssex

Quite frankly with a mortgage at circa £20k and overpaying by presumably more than 10% per annum, then there is little point in jumping ship unless you are concerned about the possibility of rates spiralling upwards. You are right in your assessment that by the time you have factored in additional costs of remortgaging to a fixed rate deal that the costs will outweigh any benefit gained.
You might however want to consider the possibility of remortgaging to an offset deal where any savings you hold can also help to reduce the mortgage term as well as allowing you the flexibility to overpay by as much as you wish. This may work for you subject to you meeting a lenders criteria.

kingstreet

Nationwide two year penalty-free tracker product?

getmore4less

£20k 2.75% £450pm £1117 worth of interest to save
Paid off in 4 years

Could save 1/2 of that juggling rates.