So I can make the conversation relevant here are some generalities:
House value: £300,000
Mortgage Part 1: £70,000 (3.29% 5 year fix that ends in January 2018)
Mortgage Part 2: £140,000 (1.79% 2 year fix that ends in August 2017)
LTV: 70%
Part 1 of the mortgage is from a previous 5 year fixed that I got when I was a bachelor and bought a flat.
Part 2 (the larger part that's ending this year) is from when we bought a new house (sold the flat) and we were advised it might make sense to align the two parts sooner rather than later.
Aligning them does make sense in my head. At the moment I'm stuck between a rock and a hard place because I can't move just one part of the mortgage to another provider - I'd need to take both AND pay early repayment fees (~£3,500) on Part 1 because it's not near to its end date.
Conversely, I don't want to just let the current fix rate go onto the standard variable rate as it's 4.74%.
Simply changing to a new rate with the current bank, the best offer available to me is: 2 years fixed at 1.69% with no fee. It's better than it is currently, but compared to other providers that deal isn't that great - in addition, it puts me in the same place come January 2018 where I'll be tied to the same bank as I'd have to pay early repayment fees to get out again.
So, it looks like I'd have to move to a tracker as these don't appear to incur fees to leave.
The only tracker that looks to be an option is: 2 years 1.29% with a £999 fee.
I'm usually pretty savvy working out the numbers but I can't get my head around if 1.29% with £999 fee today is a better deal compared not changing anything and moving over to the standard variable rate of 4.74% over just the 6 months period. Any insight here?
Also, I'd appreciate a sanity check. Am I right in thinking this is annoying as it appears to be? I fully understand the fees with moving mortgages but at the same time I've never ended up doing it as routinely I've calculated it to be cheaper to stay with the same provider (i.e. avoiding or paying fees vs rates etc)
House value: £300,000
Mortgage Part 1: £70,000 (3.29% 5 year fix that ends in January 2018)
Mortgage Part 2: £140,000 (1.79% 2 year fix that ends in August 2017)
LTV: 70%
Part 1 of the mortgage is from a previous 5 year fixed that I got when I was a bachelor and bought a flat.
Part 2 (the larger part that's ending this year) is from when we bought a new house (sold the flat) and we were advised it might make sense to align the two parts sooner rather than later.
Aligning them does make sense in my head. At the moment I'm stuck between a rock and a hard place because I can't move just one part of the mortgage to another provider - I'd need to take both AND pay early repayment fees (~£3,500) on Part 1 because it's not near to its end date.
Conversely, I don't want to just let the current fix rate go onto the standard variable rate as it's 4.74%.
Simply changing to a new rate with the current bank, the best offer available to me is: 2 years fixed at 1.69% with no fee. It's better than it is currently, but compared to other providers that deal isn't that great - in addition, it puts me in the same place come January 2018 where I'll be tied to the same bank as I'd have to pay early repayment fees to get out again.
So, it looks like I'd have to move to a tracker as these don't appear to incur fees to leave.
The only tracker that looks to be an option is: 2 years 1.29% with a £999 fee.
I'm usually pretty savvy working out the numbers but I can't get my head around if 1.29% with £999 fee today is a better deal compared not changing anything and moving over to the standard variable rate of 4.74% over just the 6 months period. Any insight here?
Also, I'd appreciate a sanity check. Am I right in thinking this is annoying as it appears to be? I fully understand the fees with moving mortgages but at the same time I've never ended up doing it as routinely I've calculated it to be cheaper to stay with the same provider (i.e. avoiding or paying fees vs rates etc)
