mortgage question

Nov 22, 2007 4 Replies
G

I have a relaively small mortgage (~15k) on a special deal due to end next Feb 2008. At that time it reverts to the bank's standard rate, an increase of ~£20/month. The current mortgage has no restrictions on how much/how often overpayments can be made and presumably this will continue once the rate reverts, something I am keen to retain.



My question is whether it is worth remortgaging, given the termination fees of the current mortgage, set-up costs of any new one, plus possible loss of overpayment facility.



Any thoughts / suggestions of new deal that would be better?


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M

It all depends on the exact details. What are the fees? What is the bank's SVR etc? Calculate how much your mortgage will cost if you don't move and compare it with the best remortgage deals available.

However, on such a small mortgage, it is less likely that you would gain by moving, unless the fees were very small.

M
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R

Probably not. Consider paying most of it off if you have unneeded savings lying around. That way you'd save more interest than the savings would earn.

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E

I agree with Ronald. Most mortgage companies seem to have a minimum of 25k anyway.

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M

I'm with Ronald and Eric, but would suggest that you speak with your current lender to see if they have a fee free product with no repayment penalties at a lower rate than SVR that you can take when the special deals end - several lenders do, Woolwich & C&G for example.

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