I want to ask a similar question. I took out a mortgage with the Halifax for 5 years fixed at a rate of 6.64% back in march 2009 over a 30 year term paying £890 a month. At the time they were the only company that could provide me the money i needed to by my first home. I have a massive early repayment charge of £6,975.00.
Im able to get a mortgage of Abbey and borrowing a new amount which will buy me out of the halifax and i would be borrowing the early repayment charge and will take my mortgage to 146k. The rate their offering is a 2 yr fixed at 3.98%. There is no booking fee and they pay valuation and legal work. If ive done my sums correctly the first year i would be catching up and paying back the early repayment charge but in the second year i would be paying more of capital than i would be with halifax and it would be over a 20 year term paying the same a month £890.
Is it the right thing to do. I might be borrowing more but i would of nocked 10 years of my mortgage?