Remortgaging - Low LTV

nb_bob

Our fixed rate 1.9% deal ends at the end of November. House value £290,000, mortgage debt £39,800. Can get a 5yr fixed Natwest @ 4.0% ish. Just wondering if there are any interesting options out there other than remortgaging. Both of us are working and we have £23K in savings.

CSL0183

The other option would be to clear your mortgage balance with a £17k personal loan over 5yrs at the leading national rate (I think currently around 3.2%) and use up your savings. 

nb_bob

Thank you for your reply. We've looked at loans but we quite like having the savings as security in these turbulent times. We're probably going to do a lump sum of 2-3K before November.

froomer

nb_bob said:

Our fixed rate 1.9% deal ends at the end of November. House value £290,000, mortgage debt £39,800. Can get a 5yr fixed Natwest @ 4.0% ish. Just wondering if there are any interesting options out there other than remortgaging. Both of us are working and we have £23K in savings.

We just got a 5yr fixed with Lloyds at 3.73%

K_S

froomer said:

nb_bob said:

Our fixed rate 1.9% deal ends at the end of November. House value £290,000, mortgage debt £39,800. Can get a 5yr fixed Natwest @ 4.0% ish. Just wondering if there are any interesting options out there other than remortgaging. Both of us are working and we have £23K in savings.

We just got a 5yr fixed with Lloyds at 3.73%

That won't apply in this case as the loan size is 100-250k for this Lloyds product. With a 40k loan size, the equivalent rate goes up to 4.02% (25k - 100k)..

dander

At that kind of sum you will probably find interest rates make less difference than you expect. With 5 years to go you are mostly just repaying and the interest component of your monthly payment is quite small. Check with your existing mortgage provider what your payments would be at a range of potential rates - when you consider the fees you'll be charged to remortgage on a new fix it may well be more expensive to do that. Maybe just sit on the variable, keep your savings as savings, but instead of adding any further money to savings, throw everything at overpaying your final mortgage payments and try and get it cleared in 2 or 3 more years.

housebuyer143

With that low an amount I would probably go for the cheapest discount or tracker I could find. Any rise in the base rate will likely be minimal in additional payments and if you get one with no early repayment charges you have the option to overpay if you wanted to.