Hi all,
Looking for a bit of help to validate my way of thinking with regards to moving away from one fixed rate mortgage to another.
Currently with Abbey on a 10 yr fixed @ 4.99 per year, monthly charge of 800. Amount owed is 126k over 21 1/2 more years. Early exit fee is 7603.
I can move to FD mortgage which is fixed @ 2.69 for 5 years with set up fee 1999 and amount borrowed would be 133603 inc exit fee for 21 years term. I would add fee to mortgage making amount borrowed 135,600
2nd option is abbey with rate of 2.99 for 5 years with fee of 999 amount borrowed would be 133603 inc exit fee for 21 years term. I would add fee to mortgage making amount borrowed 134,600
Both options would reduce my monthly payment to around 700 from 800 and over the life if I used a figure of 3.69% after fixed terms ends I would pay back 188k compared to 191k if i stayed on current deal. I used a figure of 3.69% for comparison after fixed rate ends to ensure comparison was consistent, but I could use a different figure which I know will affect over all cost paid back I wanted to draw a line. I would re mortgage again when fixed ends.
My question to the more more knowledgeable than me is whether these figures make sense (I have used MS mortgage comparison tool) and just to confirm this looks a good opportunity to reduce my monthly outgoings or use the extra money to overpay.
Thanks in advance and I hope I have gone into enough detail.
Looking for a bit of help to validate my way of thinking with regards to moving away from one fixed rate mortgage to another.
Currently with Abbey on a 10 yr fixed @ 4.99 per year, monthly charge of 800. Amount owed is 126k over 21 1/2 more years. Early exit fee is 7603.
I can move to FD mortgage which is fixed @ 2.69 for 5 years with set up fee 1999 and amount borrowed would be 133603 inc exit fee for 21 years term. I would add fee to mortgage making amount borrowed 135,600
2nd option is abbey with rate of 2.99 for 5 years with fee of 999 amount borrowed would be 133603 inc exit fee for 21 years term. I would add fee to mortgage making amount borrowed 134,600
Both options would reduce my monthly payment to around 700 from 800 and over the life if I used a figure of 3.69% after fixed terms ends I would pay back 188k compared to 191k if i stayed on current deal. I used a figure of 3.69% for comparison after fixed rate ends to ensure comparison was consistent, but I could use a different figure which I know will affect over all cost paid back I wanted to draw a line. I would re mortgage again when fixed ends.
My question to the more more knowledgeable than me is whether these figures make sense (I have used MS mortgage comparison tool) and just to confirm this looks a good opportunity to reduce my monthly outgoings or use the extra money to overpay.
Thanks in advance and I hope I have gone into enough detail.