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    • Jadakiss
    • By Jadakiss 11th Aug 18, 6:44 AM
    • 8Posts
    • 1Thanks
    Staircasing & Early Repayment Fee
    • #1
    • 11th Aug 18, 6:44 AM
    Staircasing & Early Repayment Fee 11th Aug 18 at 6:44 AM
    Hi Forum Folk

    Some assistance please, I own 40% of a shared ownership property and have been told I can re-mortgage to anything between 80% - 100%. Unfortunately I am locked into a fixed rate mortgage (ends April 2020), a new mortgage will see me paying an extra 197 a month.
    The rent if I stay with existing mortgage will be 10,000

    My questions are:[*]Is it worth paying the exit fee of 3500 or should I just wait it out?[*]if I wait it out until the end of the fixed term, is it likely that the flat price will jump substantially thus me loosing out on a bigger share?

    Any other advice welcome.

Page 1
    • HampshireH
    • By HampshireH 11th Aug 18, 8:28 AM
    • 1,392 Posts
    • 1,708 Thanks
    • #2
    • 11th Aug 18, 8:28 AM
    • #2
    • 11th Aug 18, 8:28 AM
    You will need to consider interest rates going up and also valuation of the property.

    If both are likely to rise by 2020 (likely) then you need to decide if saving 3500 now out weighs that.

    No one can say whether your flat value will rise substabtially. There are too many unknowns such as where is the flat, brexit impact (or non impact), type of market in your area etc

    If your going to do it I'd do 100% staircase so not to have to pay out a whole other set of fees later down the line
    • eddddy
    • By eddddy 11th Aug 18, 11:30 AM
    • 7,454 Posts
    • 7,483 Thanks
    • #3
    • 11th Aug 18, 11:30 AM
    • #3
    • 11th Aug 18, 11:30 AM
    Have you investigated options with your current mortgage lender?

    For example, instead of repaying the current mortgage, you might be able to increase it - with no early repayment charges.

    The extra chunk of borrowing might be on different terms - better or worse terms than you currently have.
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