Please help with ditch my fix calculations

D123456789

Current mortgage approx 105000 BTL interest only

I over pay 10 % each year and can next overpay in April 2022 10500 

2.44 % 5 year fixed ends April 2023 Then goes up to 4.24 % variable

as of 30 April 2022 ERC is 1%

option to fix for 5 years with current lender NatWest 

999 fee 2.0 %

no fee 2.33 %


I think I might be marginally better off after 5 years on the 2% rate with the fee but would appreciate help to check this calculation please 😊

getmore4less

You can't tell if you will be better of in 5years because you don't know what the rate options will be April 2023 

The first year calcs on your £105k-10% are something like(add fees make payment the same) 

interest only	rate	payment	owing
£96,444.00	2.00%	£192.15	£96,063.61
£95,445.00	2.33%	£192.15	£95,362.19
£94,500.00	2.44%	£192.15	£94,500.00

You can't recover the change costs in the first year

For the fee no fee 

A rough without the 10% max saving would be 0.33%*5*£94,500~=£1,560 which is more than the fee

Over 5 years with the 10% every year needs extra steps
As you need to iterate with the 10% reduction and a change in payment.
to determine if fee/no fee is best I get 

2% with fee added
year	amount	payment	left	Left -10%	10.00%
0	£95,499.00	£159.17	£95,499.00	£85,949.10	£9,549.90
1	£85,949.10	£143.25	£85,949.10	£77,354.19	£8,594.91
2	£77,354.19	£128.92	£77,354.19	£69,618.77	£7,735.42
3	£69,618.77	£116.03	£69,618.77	£62,656.89	£6,961.88
4	£62,656.89	£104.43	£62,656.89	£56,391.20	£6,265.69
		total 5y			total cap
		£7,821.56			£39,107.80
2.33% no fee
year	amount	payment	left	Left -10%	10.00%
0	£94,500.00	£183.49	£94,500.00	£85,050.00	£9,450.00
1	£85,050.00	£165.14	£85,050.00	£76,545.00	£8,505.00
2	£76,545.00	£148.62	£76,545.00	£68,890.50	£7,654.50
3	£68,890.50	£133.76	£68,890.50	£62,001.45	£6,889.05
4	£62,001.45	£120.39	£62,001.45	£55,801.31	£6,200.15
		total 5y			total cap
		£9,016.80			£38,698.70
2%  match cashflow.
year	amount	payment(no fee)	left	Left -10%(no fee)
0	£95,499.00	£183.49	£95,204.44	£85,754.44
1	£85,754.44	£165.14	£85,485.41	£76,980.41
2	£76,980.41	£148.62	£76,734.27	£69,079.77
3	£69,079.77	£133.76	£68,854.15	£61,965.10
4	£61,965.10	£120.39	£61,757.88	£55,557.73

total outlays are  £46,929.35 & £47,715.49   a £786 difference but with £655.44 moire debt
 

When you cashflow the same the fee option saves around £240 over 5years. 
 
For the ditch the fix 
Without further 10% you get something like

Mortgage	£94,500
payment	£192	ERC/FEE
rate	2.44%	£945
new rate	2.00%	£999
Time	Years	months
Left on current	1	0
New fix term	5	0
amount left after(months)		12
Start	rate	End
£94,500	2.44%	£94,502
£96,444	2.00%	£96,065
amount left after(months)		60
£94,500	2.44%	£94,510
£96,444	2.00%	£94,473
Switch when ERC £0
Break even rate needed no fee and fee)		48
£94,502	2.431%	£94,473
£95,501	2.155%	£94,473

Will you be able to get a no fee rate below 2.4% in a years time?

D123456789

Amazing, that’s really helpful, Thankyou .