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Is My Mortgage Any Good?

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I've owned my 1-bed flat in Cardiff since 2002. It cost me £53,000 and I took out a 25-year mortgage with Natwest for £47,700. I am currently on their Standard Variable rate of 4% and am paying back around £260 per month. I have approximately £24,000 to pay back (I was able to pay a £12,000 lump sum a year or two back). The interest rate profile over the last 8 years has been as follows:

2002 - 4.3%

2003 - 4.19%

2004 - 4.99%

2005 - 4.99%

2006 - 7.14%

2007 - 7.94%

2008 - 5.19%

2009 - 4%

2010 - 4%

Does this sound like an okay mortgage or a little excessive? I was advised (by my dad) to get one that didn't penalise for early payback as at some point I am going to be able to pay it off early either through inheritance or earnings.

I am a bit "green" with all this and don't know much about mortgages so any feedback would be most helpful. Thanks.

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well tbh you might want to get off the SVR as 4% is quite high, but thankfully your mortgage is small.

Work out how much money you have left over every month and try to get another mortgage, you might benefit from a offset one (check www.firstdiect.co.uk)

On the whole i'd say the rates you paid started off ok, but their a little high from 2006.

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With your LTV you could remortgage and many lenders will offer you a 2 or 3 year fixed rate that is stupidly cheap - eg it's quite possible to get 2.5% with many lenders with 60% LTV.

However your outstanding loan is quite small so the setup cost of the mortgage would be considerable if you work out the overall cost over the fixed term. Some lenders have a minimum loan amount on a lot of their mortgages, so because your loan is so small you might not actually qualify for them (you could remortgage and release equity, but I wouldn't recommend this generally).

Overall you're in a really good position. Ask your current lender about going onto a discounted or fixed rate. The SVR is just for people who are too lazy to shop around and find a cheaper deal.

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