Remortgage with only 2 years left

Have you actually considered the financial impact an increase in rates of say 5% over your remaining two years would have - assuming you were on a variable rate that moved in step with each increase? It's unlikely that any such increase would have a large (absolute) impact.

i'm in a similar situation with the CO-OP bank.
2 years 5 months left, gone onto a 2 year fix, rate is 0.75 less than rate that's just ended, they were most helpful sorted out the figures so mortgage runs for 2 years.
Works out payments are approx. £2 more than what i used to pay last month and i finish my mortgage 6 months earlier.

Can you suggest this

I'd move onto the SVR.
If you fixed @ 3.09% you'd pay £346 in interest over 2 years. Moving onto the SVR @ 3.99% you'll pay £462 -£116 more. Even if it went to 6% today you'd only pay £472 total interest in the two years

The benefit would be you could make unlimited amounts in over payments without any ERC.

If you made a £200 a month over payment you'd pay the mortgage off in 17 months and save £137 in interest

*All figures are approximate

as Owen shows the numbers are not that big or different due to the small amount and short term

puddy28cat wrote: »

I owe £10650 on a current rate of 3.09%. To go variable will be 3.99%. To fix over 3 years would be 2.74%.

Shame you are with the Halifax they are rubbish for the smaller mortgages < £100k but probably not worth changing unless you can get a completely free switch.

looking in more detail

To pay this off over 2 years payment and interest paid.

£10,650 @ 3.99% £462.43 £448.27
£10,650 @ 3.09% £458.17 £346.18
£10,650 @ 2.74% £456.53 £306.63

over payment limits restrict paying the fix over the 2years

The 2y fix over 3 but paying off in 2
£10,650 @ 2.74% £308.50 £455.86

With 10% overpayments(annual 1st jan) best you can squeeze that

now(june)till jan is 7 months £1,065/7= 152.14)
£10,650 @ 2.74% £460 £225.65 (left with £5,355.65 new payment £190 over 29 months)

the next year max overpayment £44
£5,355.65 @ 2.74 £234 £112.52 (left with £2,640 new payment £158 over 17 months)

with 5 months of the 2y fix left max overpayment £22

£2,640 @ 2.74% £180 £26.66 left with £1,877(should be able to have that saved)

total interest £365


If you stick with the variable £3.99 with £462 payment and get a zero% spending credit card with a long period(2y min) you could throw all your normal spending on the card and overpay the mortgage
if with normal mortgage payment and spending money you will save on interest

examples total payment interest time to pay off
£10,650 @ 3.99% £600 £346 19m
£10,650 @ 3.99% £800 £262 14m
£10,650 @ 3.99% £1000 £212 11m
£10,650 @ 3.99% £1200 £179 10m

once the mortgage is paid you have time to pay down the credit card(its the same money you would have used on the mortgage).

If you have any planned bigger spends like a holiday this could save even more.

If you have spare cash flow or can create it the variable rate will give the better option to save on interest