SWITCH TO ANOTHER MORTGAGE SCHEME WITHOUT MOVING HOUSE?
But is re-mortgaging worth it?  What should the maximum total switching costs be?

Amend the figures below to calculate the overall monthly cost saving achieved and express it as an initial lump sum or 'present value'.  Compare this with the actual front-end costs of switching, such as redemption penalties and other fees.  Press tab to move to the next field.  Interest-only mortgage assumed.

CURRENT MORTGAGE ARRANGEMENT:-

 Enter loan, tab to amend other figures

Current loan outstanding £:

Check with lender if uncertain
Current interest rate being charged % pa:  
If the interest will change to another rate, how many month's to go before it changes (if any):  
What will the interest rate change to % pa:  
NEW PROPOSED MORTGAGE ARRANGEMENT:-   Amend figures for proposed new scheme
New interest rate % pa:  
Cashback offered (if any) £: Lump sum paid soon after completion
If the new interest rate is expected to change, how many month's to go before it changes (if any):  
What will the new interest rate change to % pa:  
Expected life (months) of new mortgage scheme: Months from now before another change
Calculate the cash savings & their present value:  Compare present value with actual costs
Present value of cash savings as a lump sum:   Switch worthwhile if actual cost are less
Enter actual front-end costs (if known): -   If not known, ask the lenders;
Redemption fee (if any) £: Exit costs of current mortgage scheme
New valuation fee (if any) £: Sometimes included in an application fee
Other fees (e.g. legal) £: Sometimes offered for free by new lender

Total actual costs:

    

No redemption fee is assumed at the end of the life of the mortgage (typically 6 yrs or 72 months).

Designed by Michael Kelly for "Mortgages Exposed" 15th Feb 2001.