Mortgage Advice - Our mortgage is coming to an end and we really need some advice 🥰

29 replies

Jennie2015 · 05/03/2025 22:32

Hi,
I'm hoping for some mortgage advice please 😊.
We've been making maximum overpayments and our 5-year fixed rate ends in May 2025, but we still have 10 years left on the mortgage. Our remaining balance is £27,000, and we can afford an £8,000 overpayment, bringing it down to £19,000.
Our current lender's variable rate is going down to 7.49%. I'm not sure what to do. We were thinking about going for a 3-year fixed rate and paying off the £19,000 in that time. I spent over an hour on the phone with our provider today, and I'm still really confused about offsets, variable rates, fixed rates, etc. They said if we fix now and shorten the term, we'd have to do a whole new application.
I've been Googling, and it seems like maybe we should stay on the variable rate and overpay as much as we can? If we do that and pay it all off, I'm guessing there aren't any fees, and the mortgage just finishes?
I cant seem to decide which one would be best for us, ideally I would like to get it down asap. I am worried they may not lend us the money with it been a short term (3 years) if we go for a fixed rate and pay a lump sum.
THANK YOU! ❤️

OP posts:

Gekko21 · 06/03/2025 08:13

Some lenders will let you overpay 20% each year. We do this with RBS. However, as others have said, depending on how quickly you intend to pay off the remainder, it might be better to let your current deal expire and go on the SVR.

Moonlightstars · 06/03/2025 08:13

Bjorkdidit · 06/03/2025 07:19

Nonsense. They owe £19k. Number 1 priority is to not pay any application or broker fees.

What's the issue with making a new application? Unless you have credit history problems, it will sail through surely? Your biggest problem will be to get a mortgage with a new provider for only £19k - many have minimums of £30k+.

But you could take the minimum over any term for the best available rate without fees and save your overpayments separately - you can usually get a better rate doing this anyway.

However, owing that amount, I'm not sure I'd actually bother with a mortgage. If you have a decent credit rating you could each get a money transfer credit card take half of the outstanding mortgage each and use the money to pay off the mortgage when the deal expires.

I've just done an eligibility calculator for me and VM do this for a 4% fee, you might get a different deal - or look at your existing credit cards to see if any do an offer - I run 0% balances offset by savings to make a bit of extra money and I had a dormant Sainsbury's card that offered me a completely free balance or money transfer (no interest or fees) so I now have £9k costing 0% offset by £9k of savings earning 4.5%.

Have a look at:

https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Pay the minimum and save the rest separately. After a year, look for another deal with the lowest fee - I've been doing this for 20 years and never actually paid a fee for a balance transfer. Rinse and repeat until you've paid off the money that was your mortgage (or keep going as long as the offers are available, just don't forget to always match the borrowed money with savings).

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Don't be so rude and wrong.
Lots of brokers charge nothing for advice and the fees are no different than not going through a broker. She could get the best deal and then do a calculation based on that.

NotDavidTennant · 06/03/2025 08:15

You only need to put in a new application if you're changing lender.

If your current lender has a good rate on a three year fix you can simply phone them up and ask to switch.

Gonk123 · 06/03/2025 08:15

What about a 2 year fixed rate? And then overpay on the last year?

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