Number Crunching Novice :0)

mumbomumma

Hello there.

Having heard horror stories about using brokers and being someone who is easily swayed, I thought it would be safer for me to post my situation on here in the hope that someone who is a whizz with numbers and completely independant could give me some advice :0)

• I have a 2 years fixed rate mortgage with the Chelsea which is due to expire mid-April at a rate of 4.69%
• I owe £60K on the mortgage and have another 20 years to go and the house is worth £180
• Chelsea have offered 6.1% fixed for 5 years with no fees to pay.
• If leave the Chelsea in April I will have to pay £185 admin.
• I would prefer another a fixed rate (but say 5 years this time) so I know where I am each month

I have seen the Direct Line mortgage at 5.29. Would this be a good move for me or should I stay put. I have seen some of you saying that you have to look at the long-term figures but am not sure how I work these out

Sorry for sounding daft, but any advice really would be appreciated.

Thanks in advance

chuckles1066

mumbomumma wrote: »

Hello there.

Having heard horror stories about using brokers and being someone who is easily swayed, I thought it would be safer for me to post my situation on here in the hope that someone who is a whizz with numbers and completely independant could give me some advice :0)

• I have a 2 years fixed rate mortgage with the Chelsea which is due to expire mid-April at a rate of 4.69%
• I owe £60K on the mortgage and have another 20 years to go and the house is worth £180
• Chelsea have offered 6.1% fixed for 5 years with no fees to pay.
• If leave the Chelsea in April I will have to pay £185 admin.
• I would prefer another a fixed rate (but say 5 years this time) so I know where I am each month

I have seen the Direct Line mortgage at 5.29. Would this be a good move for me or should I stay put. I have seen some of you saying that you have to look at the long-term figures but am not sure how I work these out

Sorry for sounding daft, but any advice really would be appreciated.

Thanks in advance

Assuming interest only, £60,000 x 6.1% = £3,660 interest per year, £305 per month

£60,000 x 5.29% = £3,174 interest per year, £264.50 per month

mumbomumma

It is a repayment mortgage I think - I just pay one amount i.e I dont have an endowment.

Should I work in the costs too - the set up fees for the new mortgage and exit fees from the old?

Trying_to_be_good

Yes, you need to work out costs - exit fee, arrangement fee, valuation, legals etc.

For the direct line deal (http://www.directline.com/mortgages/fixed/deal_5.htm) the arrangement fee is £499 plus the telegraphic transfer of £30, no legals or valuation for standard work.

Also important, of course, is your salary in relation to the size of the loan.