I am currently 2 years into a 3 year fixed mortgage term with Northern Rock
The rate is capped, though we are currently paying the maximum rate under that term. The monthly payment is currently £470 (and presumably can't rise any higher).
I also have a loan with £8,500 outstanding, on which I pay £160/month.
I would like to add the loan onto the mortgage - to get monthly payments down and to consolidate the two, and have found a couple of products with Nationwide where I could get this on a 2 year fixed rate for £490/month or a 2 year tracker currently at £440 a month.
The thing that is stalling me, is that I have an ERC on the existing mortgage of approx £1500
Is it worth just paying this now, and making the obvious savings (some of which I may well use to overpay on the mortgage - but consider that I won't do that for now, be pessimistic :) )...or would I be better off staying with my current product until this time next year when I would be able to move with no ERC
I suppose in short, I'm wondering if I will save more than I spend by paying the ERC!!!