Another mortgage advice question

[scary88ie]

Hi all,

newbie here, I currently have a mortgage of 257k over 35 years with first active, fixed for 5 years at 5.2% with 4 years left and 34 years left on term which reverts to a tracker of ecb +1.15% after the 5 years.

My dilema is should I switch to BOI and 3.4% variable over 25years with the same monthly payments I have now which are managable and a new mortgage of 264K(includes breakage fees of 7K) or stay with FA. I will have 2 loans cleared in the 4 years i am fixed which i could then start over paying to reduce term when I revert to the tracker.

I have no idea how to work out which i would be better off with. Any help and advice appreciated.

Cormie

 

[NorfBank]

Hi there,

Welcome.

Question:
Why did you go on the 5 year fixed, was it because you could get a bigger mortgage from First Active on the 5 year fixed than anywhere else or was it just for certainty of repayments?

 

[scary88ie]

hi

I went with the fixed as at the time I believed that interest rates were going to continue to rise and i suppose for the certainty of payments aswell. my priority now is to reduce the term, but would i be better off staying as i am and wait for the tracker and start to over pay then or reduce the term now, I dont know how to calculate all this.

cormie