Product transfer options (TSB) advice/opinions on options please.

anna42hmr

I own a flat, have £36K left on the mortgage and aprox value is £120,000 and a current rate of 2.24%

I have been overpaying (within the 10% allowances) since i took it out in 2015, and as such am hoping to have the mortgage paid off in the next 6 years or so (as opposed to the 13 &1/2 years left on the contracted mortgage).

My current 5 year fix is due to end in October, and i will be able to product transfer 3 months before that (so can start the process mid/end July.  Previously i went from a 2 year fix to a 5 year fix, but this time have noted that TSB has opened their fix and flex mortgage option to product transfers too (where the mortgage interest rate is fixed for 10 years but no ERC's if pay off after the end of year 5.   Just wondering what peoples views are of this and what i need to consider between them.

At present the 2 year and 5 year fix options (with no fee) are both the same interest rate (1.69 until May 2023 and 31 May 2026) the fix and flex is 2.59% fixed until 31 May 2031 (all for up to LTV of 60% and under).
( info from https://www.tsb.co.uk/mortgages/existing-customers/ )

what things would you recommend i consider (have no plans of selling etc at this time).
They also do options for the 2/5 year fixes, with lower rates where fees can be paid but given the small mortgage i am thinking that a zero fee would be better overall (£995).

They also do normal 10 year fix at 2.14% but as that is fixed to 31 May 2031 and with ERC's throughout, feel this will not be compatible with my intention to pay off mortgage early.  

Any comments and things i need to take into consideration would be appreciated

anna42hmr

has any one any advise or comments on this one?  many thanks

getmore4less

missed this earlier.

First thought is 5year fix and overpay looks OK. if the 2year ist he same only benefit is if you have too much to overpay and hit the limits

https://www.tsb.co.uk/mortgages/existing-customers/fix-and-flex/
2.19% 10y fix/flex (decent enough deal)
1.69% 5y fix  ( ok for the no fee and the easy option small savings with a remortgage.)

at 5 years  on a 6 full term schedule payment

amount	rate	payment	owing
£36,000.00	2.19%	£534.02	£6,332.92
£36,000.00	1.69%	£534.02	£5,762.24

So little left after 5 years any rate changes won't be that significant.
Might have to juggle the overpayments/savings a bit with a 10% limit as you will hit that before the 5y is up if you have over 500pm available

on the full term without overpayments it look like this
still a good saving 

amount	rate	payment	owing
£36,000.00	2.19%	£256.89	£23,888.65
£36,000.00	1.69%	£256.89	£23,100.35

anna42hmr

thank you so much for your reply and comments, i really appreciate it.

anna42hmr

Well i have started the product transfer last week (online), so will hopefully be in affect from 1 August, took the 1.69 no fee 5 year deal but end dates now extended so fixed until the August rather than the May dates previously.   

thanks everyone for the help on this one, i appreciate it