Re-mortgage choices 3 years to pay off
Discussion
Hello all,
Our mortgage is up for renewal in October of this year looking at the figures if I put some savings in I can reduce the amount we'd need to borrow to 35-40k making a 3 year term affordable. Best rates seem to be on 2 year trackers although 3 year fixed with the option of over payments isn't hugely more expensive. Does this seem like the sensible option? At the monthly payment we'd still have a bit of scope to over pay if we wanted to which had me thinking of reducing the term further still but would rather not be too tied in if we find it's a stretch. The cash I plan to put in is just in instant access early next to no interest.
Thanks
Our mortgage is up for renewal in October of this year looking at the figures if I put some savings in I can reduce the amount we'd need to borrow to 35-40k making a 3 year term affordable. Best rates seem to be on 2 year trackers although 3 year fixed with the option of over payments isn't hugely more expensive. Does this seem like the sensible option? At the monthly payment we'd still have a bit of scope to over pay if we wanted to which had me thinking of reducing the term further still but would rather not be too tied in if we find it's a stretch. The cash I plan to put in is just in instant access early next to no interest.
Thanks
mcflurry said:
With a mortgage of that size, do the fees and dispersments (sp) not wipe out the savings on the interest?
Thanks for the reply. Not entirely sure what you mean? The product fees are between £799 and £999 but expect the option would be to drop on the our current lender SVR if over 3 year and over payments saved on the product fees.i'd suggest looking at Nationwide - 2 yr tracker BBR+1.19% (1.69% payrate).
Free valuation, free legals and £0 arrangement fee. And no penalty.
60% ltv.
Won't cost you anything to apply. First 2 years on low rate, then might need to renegotiate for another similar deal for the 3rd year - or stay on SVR.
or apply for a 4 year term, then overpay. At least at the end of the 2 year term, you can then get another similar 2 year product, and pay it off early.
don't think they offer a 3 year deal on the same kind of rate/fees.
ps. they are slow - so be prepared for a wait for an offer - c.2-3 week, then a couple of weeks for the legals.
Free valuation, free legals and £0 arrangement fee. And no penalty.
60% ltv.
Won't cost you anything to apply. First 2 years on low rate, then might need to renegotiate for another similar deal for the 3rd year - or stay on SVR.
or apply for a 4 year term, then overpay. At least at the end of the 2 year term, you can then get another similar 2 year product, and pay it off early.
don't think they offer a 3 year deal on the same kind of rate/fees.
ps. they are slow - so be prepared for a wait for an offer - c.2-3 week, then a couple of weeks for the legals.
stut4 said:
i'd suggest looking at Nationwide - 2 yr tracker BBR+1.19% (1.69% payrate).
Free valuation, free legals and £0 arrangement fee. And no penalty.
60% ltv.
Won't cost you anything to apply. First 2 years on low rate, then might need to renegotiate for another similar deal for the 3rd year - or stay on SVR.
or apply for a 4 year term, then overpay. At least at the end of the 2 year term, you can then get another similar 2 year product, and pay it off early.
don't think they offer a 3 year deal on the same kind of rate/fees.
ps. they are slow - so be prepared for a wait for an offer - c.2-3 week, then a couple of weeks for the legals.
Cheers I'll have a look at that-I'll have to knock up a spread sheet and get an overall cost for comparison on the deals after factoring in fees etc. Free valuation, free legals and £0 arrangement fee. And no penalty.
60% ltv.
Won't cost you anything to apply. First 2 years on low rate, then might need to renegotiate for another similar deal for the 3rd year - or stay on SVR.
or apply for a 4 year term, then overpay. At least at the end of the 2 year term, you can then get another similar 2 year product, and pay it off early.
don't think they offer a 3 year deal on the same kind of rate/fees.
ps. they are slow - so be prepared for a wait for an offer - c.2-3 week, then a couple of weeks for the legals.
my mistake - rate is 2 yr tracker at BBR+1.09% giving payrate of 1.59%.
no valuation fee; no legal fees to remortgage; no arrangment fee and no early repayment charges, apart from a £90 settlement fee when fully repaid.
unlimited overpayments allowed.
they don't offer a 3 year or more, version of it, so you'll need to look around in 2 years for a similar deal, otherwise you'll drop onto their SVR (currently 3.99%).
other option would be a 3 year fixed with Nottingham or Tescos at 2.04%, or Nationwide at 2.09% - no val, legals or arrangement fee, but they tie you in for the full 3 year term. so you'd be penalised if you repaid earlier than the full 3 years.
hope this helps.
no valuation fee; no legal fees to remortgage; no arrangment fee and no early repayment charges, apart from a £90 settlement fee when fully repaid.
unlimited overpayments allowed.
they don't offer a 3 year or more, version of it, so you'll need to look around in 2 years for a similar deal, otherwise you'll drop onto their SVR (currently 3.99%).
other option would be a 3 year fixed with Nottingham or Tescos at 2.04%, or Nationwide at 2.09% - no val, legals or arrangement fee, but they tie you in for the full 3 year term. so you'd be penalised if you repaid earlier than the full 3 years.
hope this helps.
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