{"id":133623,"date":"2023-01-09T14:00:10","date_gmt":"2023-01-09T07:00:10","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-i-let-my-fixed-rate-mortgage-term-end-without-negotiating-a-new-deal\/"},"modified":"2023-01-09T14:18:53","modified_gmt":"2023-01-09T07:18:53","slug":"should-i-let-my-fixed-rate-mortgage-term-end-without-negotiating-a-new-deal","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-i-let-my-fixed-rate-mortgage-term-end-without-negotiating-a-new-deal\/","title":{"rendered":"Should I let my fixed-rate mortgage term end without negotiating a new deal?"},"content":{"rendered":"


\nThe balance would be \u00a383,000 and my husband and I have about \u00a363,000 in accessible savingsQ My three-year fixed-rate mortgage ends at the beginning of April 2023. At that point my mortgage balance will be \u00a383,000. My husband and I have approximately \u00a363,000 in accessible savings, so I\u2019m wondering if it\u2019s worth letting the fixed-rate term end without negotiating a new deal. I think doing this would allow us to use our entire savings to pay off a large chunk of the mortgage without any penalty fees. We\u2019d then have about \u00a320,000 on the mortgage on which we would be charged the follow-on-rate of 5.5%. If we did this, as well as avoiding a repayment penalty, we\u2019d also dodge having to pay a fee to arrange a new fixed-rate deal. Plus, the amount of interest paid a month would obviously be less since the overall debt would be a lot smaller. But I\u2019m not sure if I\u2019m being naive, and perhaps making a decision to move on to a follow-on rate without negotiating a new deal is risky. Might I be missing a trick? It\u2019s worth noting that myself and my husband are both self-employed, and this would obliterate our savings \u2013 but having such a small mortgage on our London home would also be good peace of mind. GEA Are you sure that your lender\u2019s follow-on \u2013 or revert \u2013 rate is still 5.5%? The reason I ask is that there has been a lot of movement in mortgage rates recently so it might be worth checking again before you make a final decision. Continue reading…
\n
\nSource : theguardian.com
\nRead more…Should I let my fixed-rate mortgage term end without negotiating a new deal?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The balance would be \u00a383,000 and my husband and I have about \u00a363,000 in accessible...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-133623","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-yLd","jetpack-related-posts":[{"id":132230,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-our-savings-go-towards-the-help-to-buy-loan-or-overpaying-a-new-mortgage\/","url_meta":{"origin":133623,"position":0},"title":"Should our savings go towards the help-to-buy loan or overpaying a new mortgage?","date":"December 5, 2022","format":false,"excerpt":"\r Our five-year fixed-rate deal ends soon, we have saved \u00a3100,000 and need the best remortgage strategyQ My husband and I purchased a property in May 2018 for \u00a3600,000 using the London help-to-buy scheme. 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