14 months left on fixed rate and worried

drlaurawatson

Thanks for all the helpful comments and impressive stats from some of you!  I think I have decided to over pay what I can and sit tight until I can remortgage without a charge.  I found a really helpful calculator elsewhere on this site that calculates both how much you can save in interest by overpaying and the rate I would need to find for a mortgage interest rate to make it worth paying the ERC - in my case a negative rate!

adsmithy

drlaurawatson said:

Thanks for all the helpful comments and impressive stats from some of you!  I think I have decided to over pay what I can and sit tight until I can remortgage without a charge.  I found a really helpful calculator elsewhere on this site that calculates both how much you can save in interest by overpaying and the rate I would need to find for a mortgage interest rate to make it worth paying the ERC - in my case a negative rate!

and remember you can apply for your new mortgage 6 months in advance with some providers. With NatWest, I was able to start it just over 6 months, as by the time it took to process and approve the mortgage, my 6 month offer started the day the offer was eventually made. 

Stevo_safc

drlaurawatson said:

Thanks for all the helpful comments and impressive stats from some of you!  I think I have decided to over pay what I can and sit tight until I can remortgage without a charge.  I found a really helpful calculator elsewhere on this site that calculates both how much you can save in interest by overpaying and the rate I would need to find for a mortgage interest rate to make it worth paying the ERC - in my case a negative rate!

Have you got a link for the calculator?

oliel

Your can lock in a rate 6 months before your fixed rates ends with a lot of lenders - i know for sure with cyldesdale you can lock in a rate 6 months before if its higher than rate you are on it starts from when your old rate is due to end if its lower is starts 3 months before your current rate ends.

fewcloudy

Stevo_safc said:

drlaurawatson said:

Thanks for all the helpful comments and impressive stats from some of you!  I think I have decided to over pay what I can and sit tight until I can remortgage without a charge.  I found a really helpful calculator elsewhere on this site that calculates both how much you can save in interest by overpaying and the rate I would need to find for a mortgage interest rate to make it worth paying the ERC - in my case a negative rate!

Have you got a link for the calculator?

https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

fewcloudy

drlaurawatson said:

Thanks for all the helpful comments and impressive stats from some of you!  I think I have decided to over pay what I can and sit tight until I can remortgage without a charge.  I found a really helpful calculator elsewhere on this site that calculates both how much you can save in interest by overpaying and the rate I would need to find for a mortgage interest rate to make it worth paying the ERC - in my case a negative rate!

That is all you can do realistically.
And it's a great option because if rates do NOT go up to the levels you are worrying about, the over-payments are not wasted or pointless. The effect these will have on your mortgage are real, and you will be well pleased in x number of years that you did this.

Whilst it is good that you are thinking (worrying) ahead, I do not think rates will be anywhere near 7%.  Maybe BOE base rate will reach 3% over next year or so.  It's a very blunt tool to try to reign in the rate of inflation, and the damage and side effects of raising rates up to old 'normal' levels of around 5-6% are well known and clearly signposted.