We took out our mortgage for our first house in Dec 2009 on a 3 yr fix at 4.99% (Lloyds lend a hand mortgage if that is relevant). The fix is coming to an end in January as far as I can tell although oddly we haven't had any communication from the provider about this - so that's my first question - should we already have heard from them? I'm surprised they haven't tried to sell us a remortgage yet. We usually get our annual statement just after Christmas.
The other and main question is about calculating our new monthly payments on the SVR, which is 2.5% for us (so we have no plans to remortgage at the moment but pay down as much of the capital as we can while interest is low). I feel I should know the answer to this as maths is my specialist subject... but how do I calculate the new monthly payment with an online calculator, do I just replace the interest rate with 2.5% but keep the mortgage total (£220k) and term (25 yrs) the same? Or do I reduce the term to 22 yrs, and/or the total to the current total whatever that is? We want to reduce our monthly payments to the lower total and overpay in lump sums occasionally, rather than overpay monthly for various reasons.
I know I can get the answers to all my questions and more from C&G but I keep forgetting to dig out the paperwork and bring it to work with me to call them. So thank you in advance!
The other and main question is about calculating our new monthly payments on the SVR, which is 2.5% for us (so we have no plans to remortgage at the moment but pay down as much of the capital as we can while interest is low). I feel I should know the answer to this as maths is my specialist subject... but how do I calculate the new monthly payment with an online calculator, do I just replace the interest rate with 2.5% but keep the mortgage total (£220k) and term (25 yrs) the same? Or do I reduce the term to 22 yrs, and/or the total to the current total whatever that is? We want to reduce our monthly payments to the lower total and overpay in lump sums occasionally, rather than overpay monthly for various reasons.
I know I can get the answers to all my questions and more from C&G but I keep forgetting to dig out the paperwork and bring it to work with me to call them. So thank you in advance!