Is it worth for us remortgaging?

Solenoid

Only around £60000 in 12 years left to pay off our mortgage in full. Currently on variable rate. Not sure what rate we pay but we pay about £530 at the moment. We can just afford it and worried that interest rates goes up and we won't be able to afford it. So is it worth switching? If interest rates goes up, how much that would change our monthly payments? Roughly? Thanks

K_S

Solenoid said:

Only around £60000 in 12 years left to pay off our mortgage in full. Currently on variable rate. Not sure what rate we pay but we pay about £530 at the moment. We can just afford it and worried that interest rates goes up and we won't be able to afford it. So is it worth switching? If interest rates goes up, how much that would change our monthly payments? Roughly? Thanks

@solenoid With the numbers mentioned, it looks like you're on a rate of around 4.2% or so, which is quite high to be honest assuming that your house is value at 90-100k+.

Which lender are you with? It might be worth considering a product switch to a lower rate product. It usually involves no paperwork or checks.

grumiofoundation

Assuming a repayment mortgage if you owe £60,000 and have 12 years off looks like you are paying ~4%.

Ask your lender what rate you are on. See what rates they would offer you. 

Would depending on the house value but id you could get this down to say 1.5% that would be ~£470 per month. (might not seem like a lot but thats £10,000 over the next 12 years).

Would have to factor in the fees etc of remortgaging/product switching but chances are it would be worth it. 

Solenoid

Oh yes I forgot to say that the house is worth £200000. I have mortgage statement somewhere in the house. See if I can find it to tell you exact figures. Mortgage is with cooperative bank.

grumiofoundation

Ok so that makes your LTV 30%.

According to link below coop’s SVR is 4.34%

As you can see rates from 1.63% for 60% LTV, 2 year fixed, no product fee. 

Have a look at some online mortgage comparisons sites to see what you can get elsewhere. 

https://www.co-operativebank.co.uk/mortgages/existing-mortgage-rates

Solenoid

Oh yes I just found the statement. They are charging us 4.34%. So can we remortgage or not allowed with 30% LTV? Thanks for the replies

K_S

Solenoid said:

Oh yes I just found the statement. They are charging us 4.34%. So can we remortgage or not allowed with 30% LTV? Thanks for the replies

@solenoid Generally speaking, this is what you need to do to check out your options with Co-Op https://www.co-operativebank.co.uk/mortgages/switch-your-deal

Solenoid

K_S said:

Solenoid said:

Oh yes I just found the statement. They are charging us 4.34%. So can we remortgage or not allowed with 30% LTV? Thanks for the replies

@solenoid Generally speaking, this is what you need to do to check out your options with Co-Op https://www.co-operativebank.co.uk/mortgages/switch-your-deal

Oh thanks for the link. Looking at it now 🙂

getmore4less

£60k 12years paying £530pm  house worth £200k
coop bank variable is 4.34%  when you say 12y do you mean more like  12y 2month, I will use that

https://www.co-operativebank.co.uk/mortgages/switch-your-deal

Retention deals for 5years   1.68% £0 fee or 1.35% £999  fee 1.29% £1499 fee

over 5 years  for the 4 options paying the £530pm

amount	rate	payment	owing	interest
£60,000.00	4.34%	£529.69	£39,089.49	£10,870.84
£60,000.00	1.68%	£529.69	£32,123.74	£3,905.08
£60,999.00	1.35%	£529.69	£32,396.69	£3,179.04
£61,499.00	1.29%	£529.69	£32,783.65	£3,066.00

saving around £7k I think that is worth switching.
if you wanted to reduce your payment that would go down to around £455

How long have you been on this high rate?

there are other lender options that might save ~£100 over 5 years if you can be bothere with a lender chage.

1.68% is not that bad for 5years and if you can keep the payment closer to £500 that will help  reduce the amount come the next switch. 

Solenoid

getmore4less said:

£60k 12years paying £530pm  house worth £200k
coop bank variable is 4.34%  when you say 12y do you mean more like  12y 2month, I will use that

https://www.co-operativebank.co.uk/mortgages/switch-your-deal

Retention deals for 5years   1.68% £0 fee or 1.35% £999  fee 1.29% £1499 fee

over 5 years  for the 4 options paying the £530pm

amount	rate	payment	owing	interest
£60,000.00	4.34%	£529.69	£39,089.49	£10,870.84
£60,000.00	1.68%	£529.69	£32,123.74	£3,905.08
£60,999.00	1.35%	£529.69	£32,396.69	£3,179.04
£61,499.00	1.29%	£529.69	£32,783.65	£3,066.00

saving around £7k I think that is worth switching.
if you wanted to reduce your payment that would go down to around £455

How long have you been on this high rate?

there are other lender options that might save ~£100 over 5 years if you can be bothere with a lender chage.

1.68% is not that bad for 5years and if you can keep the payment closer to £500 that will help  reduce the amount come the next switch. 

Thanks. We were on higher rate last year. They did lower it this year 😂 yes 12 years 6 months to be exact. 

getmore4less

if you have been on that rate for a year you have already thrown away best part of £1,500