Help with remortgage

ydarin,
This is a problem as you have only had the loan for 18 months. You have to decide if continuing for another 5.5 years is better than paying £5000 ERC.

Another way of putting it is this, can you save more than £1000 per year by remortgaging now. On your £100000 loan that means a saving of 1% min on the rate. Depending on exactly what rate you are currently paying 4.5+1.87 would give 6.37%. This is still below many lenders SVR, but could easily be bettered by a decent UK fixed rate.

Hope this helps.
NeilH

ydarin,
Do behave!! NeilH, as his signature suggests is a broker, so he pays his mortgage by recommending UK lenders to his clients. He's already given you a freebie by indicating a rate you need to beat to making switching and paying the £5K ERC's worthwhile.

Do your own research using the links to moneynet, moneyfacts etc on the mortgage section of this site or get a broker to do it for you. Many are fee free, working on commission from the lender which you won't get if you go direct, just make sure they're whole of market and not tied to a panel of lenders. You can locate a local one on https://www.unbiased.co.uk from your postcode.

There are loads of lenders with fixed or variable rates below 5.3%, a lot depends on how long you want the deal to last and how much fees there are to the new lender. BTW, whilst Neil's calcs are accurate, if the Libor rate does in future go back towards its historic average of 3%, the switch won't seem such good value afterall, so it might be worthwhile sitting it out a little longer [unless affordability is a real problem] to see if it is likely to peak in the foreseeable future before paying £5K + new lenders fees + old lenders release fee to jump ship.

BoL.