Re-mortgage calculator (locking in for longer)

Mr_Grumpy

Morning Hive Mind,

Before I start down the route of a excel spreadsheet and no-doubt reinvent the wheel, does anyone know of a re-mortgage calculator for the following scenario;

• Quit 5 year fix with 3 years remaining and paying exit fee
• Re-mortgage onto a 10 year deal, fractionally higher interest rate
• Exam question - what would the average rate have to be for years 4-10 be to break even on paying the exit fee on the existing deal and the marginally higher rate for years 1-3?

Thanks in advance.  

getmore4less

I have one I can plug your numbers into.

Not seen one on line anywhere.

 need 
Amount
Payment pm
Rates
Product fees
Deal lengths to the month.

I have posted the output on a few threads.

Mr_Grumpy

getmore4less said:

I have one I can plug your numbers into.

Not seen one on line anywhere.

 need 
Amount
Payment pm
Rates
Product fees
Deal lengths to the month.

I have posted the output on a few threads.

That would be great, thanks.  Details as follows:

Principle - £165k
Payments - £708 at present, £720 if we move.
Currently 1.49%, moving to 1.66%
Cost to move £3,500 ERC and £999 fee on the new deal
Current deal has 36 months to run.  New deal would be for 120 months.

Thanks.  

getmore4less

Mortgage	£165,000
payment	£720	ERC/FEE
rate	1.49%	£3,500
new rate	1.66%	£999
Time	Years	months
Left on current		36
New fix term	0	120
amount left after(months)		36
Start	rate	End
£165,000	1.49%	£146,047
£169,499	1.66%	£151,590
amount left after(months)		120
£165,000	1.49%	£98,387
£169,499	1.66%	£106,168
Switch when ERC £0
Break even rate needed no fee and fee)		84
£146,047	2.320%	£106,168
£147,046	2.199%	£106,168

In 3years you will be £5.5k behind over not switching
rate needed then to break even ~2.2%

Mr_Grumpy

So if 2.2% is the breakeven then I ask myself, "will I be able to re-mortgage @ 2.2%  or lower in 3 years time"?  Hmmmmm

dimbo61

If you have a spare £4,500 plus other costs to move lenders then overpay every month instead.

Mr_Grumpy

dimbo61 said:

If you have a spare £4,500 plus other costs to move lenders then overpay every month instead.

But then we get into the overpay or invest debate that must have been done to death I'd imagine.  

getmore4less

Mr_Grumpy said:

So if 2.2% is the breakeven then I ask myself, "will I be able to re-mortgage @ 2.2%  or lower in 3 years time"?  Hmmmmm

That the dilemma everyone has,  does the ERC drop at any point....

Nationwide put their 5y fee fix up to 1.74% on 24 Feb  some lenders are already over 2%
(nationwide low was 0.84% last Sept)

Here is the table for the difference in 10y based on a few rates in 3years time.

£147,046	1.50%	£99,587	£6,581.18
£147,046	2.00%	£104,263	£1,905.59
£147,046	2.20%	£106,182	-£14.04
£147,046	2.50%	£109,116	-£2,947.68

I used the add the fees model if we use the overpayment of the fees it looks like this.

Mortgage	£160,501
payment	£720	ERC/FEE
rate	1.49%	£3,500
new rate	1.66%	£999
Time	Years	months
Left on current		36
New fix term	0	120
amount left after(months)		36
Start	rate	End
£160,501	1.49%	£141,342
£165,000	1.66%	£146,862
amount left after(months)		120
£160,501	1.49%	£93,165
£165,000	1.66%	£100,858
Switch when ERC £0
Break even rate needed no fee and fee)		84
£141,342	2.343%	£100,858
£142,341	2.217%	£100,858

£142,341	1.50%	£94,362	£6,495.43
£142,341	2.00%	£98,852	£2,005.68
£142,341	2.20%	£100,695	£162.20
£142,341	2.50%	£103,513	-£2,655.22

 
Makes a small difference.to the main calculation.

Thrugelmir

Mr_Grumpy said:

dimbo61 said:

If you have a spare £4,500 plus other costs to move lenders then overpay every month instead.

But then we get into the overpay or invest debate that must have been done to death I'd imagine.  

Noticeable after recent events how much quieter it is on this front. A new experience for a generation who've never known anything different. 

Mr_Grumpy

Thrugelmir said:

Mr_Grumpy said:

dimbo61 said:

If you have a spare £4,500 plus other costs to move lenders then overpay every month instead.

But then we get into the overpay or invest debate that must have been done to death I'd imagine.  

Noticeable after recent events how much quieter it is on this front. A new experience for a generation who've never known anything different. 

Stock market if pretty grim right now but time will offset the volatility.  

Mr_Grumpy

getmore4less said:

Mr_Grumpy said:

So if 2.2% is the breakeven then I ask myself, "will I be able to re-mortgage @ 2.2%  or lower in 3 years time"?  Hmmmmm

That the dilemma everyone has,  does the ERC drop at any point....

Nationwide put their 5y fee fix up to 1.74% on 24 Feb  some lenders are already over 2%
(nationwide low was 0.84% last Sept)


 
Makes a small difference.to the main calculation.

The deal I was looking at has been pulled this morning so the whole thing has just become academic.  Another boat missed.