I have finally decided to sell current property and upsize and need to know if I should extend my better rate borrowing duration and shorten the higher rate borrowing duration?
My details are as follows:-
Current mortgage · £59k mortgage on variable tracker 0.58% above BR for remaining 11 yr term (no tie ins)
Tookout additional 8K last yr with C&G fixed rate @ 6.29% which ends 31.03.15 then HVR
Total current mortgage balance £66,470.00.
Realistic current property value 120K.
£53.5k Equity. Allowing approx 5K for fees therefore £48.5K Equity.
I Can port the 59K on same T&Cs and can amend term and I have been given some figures from C&G as follows.
Selling existing £120k and buying at £150,000 (25 year term - Repayment basis)
Exsting Mortgage is split as follows:
Approx £59 @ 1.08% £224 approx
Approx £7527 @ 6..29% £50 addition borrowing (existing).
Approx £40635 @ 3.39% £202 Additional borrowing for new property. Two yr deal then HVR
Total approx £476 per month
Would I be better off increasing the better rate borrowing over a longer duration and shortening the higher interest borrowing to say 15 or 20 yrs? Rather than 25yrs.
Or shall I keep them all 25 yrs and overpay as much as I can on the higher rate borrowing if this would be allowed ?
Thanks
My details are as follows:-
Current mortgage · £59k mortgage on variable tracker 0.58% above BR for remaining 11 yr term (no tie ins)
Tookout additional 8K last yr with C&G fixed rate @ 6.29% which ends 31.03.15 then HVR
Total current mortgage balance £66,470.00.
Realistic current property value 120K.
£53.5k Equity. Allowing approx 5K for fees therefore £48.5K Equity.
I Can port the 59K on same T&Cs and can amend term and I have been given some figures from C&G as follows.
Selling existing £120k and buying at £150,000 (25 year term - Repayment basis)
Exsting Mortgage is split as follows:
Approx £59 @ 1.08% £224 approx
Approx £7527 @ 6..29% £50 addition borrowing (existing).
Approx £40635 @ 3.39% £202 Additional borrowing for new property. Two yr deal then HVR
Total approx £476 per month
Would I be better off increasing the better rate borrowing over a longer duration and shortening the higher interest borrowing to say 15 or 20 yrs? Rather than 25yrs.
Or shall I keep them all 25 yrs and overpay as much as I can on the higher rate borrowing if this would be allowed ?
Thanks