Mortgage brains needed!

[DS240]

Usually just visit car topics on Pistonheads, but hoping I can tap into some finance brains bigger than mine!

Fiancée currently has £369,402 left on the mortgage.

Recently horrified to realise she was stuck for another 2 years in a 4.39% fixed rate so pushed to make some enquiries.

For the sake of round figures, the cost of breaking the fixed and the fees for a new rate is £8000.

Been offered a new rate of 1.64%

Over two years, this represents a £12,700 saving on monthly payments alone.... With fees, still saving £4,700!
(Current monthly payment is £2026 and new one will be £1497)

However, I can't get my head around working out the figures to see how much difference there will be in the interest paid over the two years. I know there will be benefits in terms of more of the mortgage being paid off, but my brain starts to smoke when somehow working out how much exactly?

Is anyone able to answer these scenarios?

- How much of the mortgage would be left if the current 4.39% rate is kept until the current fixed period expires at Sept 2018?

- How much of the mortgage would be left if swapping immediately to the 2yr fixed 1.64% rate, at the conclusion of that term?

- How much of the mortgage would be left if swapping immediately to the 2yr fixed 1.64% rate, whilst also overpaying £100 each month, at the conclusion of that term?

Many thanks. Hope the scenarios make sense.

[DS240]

I was just treating the £8000 separately.

The fees pay for themselves with the monthly savings made on the lower rate. Even with fees, the monthly savings alone over two years still leave £4,700 in our favour.

I was trying to work out how much more of the mortgage would be paid off on the lower interest rate compared with doing nothing and sticking to the high rate. And on top of that, how much benefit there would be over paying by 100 each month for the 2 years.

[DS240]

CoolHands said:

This one lets you see by monthly view if you click on tab unlike most that only let you see annual so have a play around:

http://www.calculator.net/mortgage-calculator-uk.h...

Thank you, this seems to answer the main questions.

Going to lower rate for 2 years saves £12,700 in monthly payments. Take off the fees £8000, still leaves us £4,700 better off.

On top of that, the lower rate means £7,300 more of the mortgage is paid off after 2yrs than sticking with high rate. Double bonus.

The overpayment for 2 years basically does nothing extra other than paying off exactly what you put in. The bigger gains would come later down the line it seems.

It would seem like a no brainer to go ahead.

Thanks for the responses.