redeeming mortgage within fixed term

ttaylor

Is this a big no-no? My brother is looking to sell his house but still has a year left of a 2 year fixed term. I think the fee he would have to pay is about 3% and could be around 2.5k. Is he better off waiting and selling in a year?

kingstreet

He'd be £2,500 better off if he waited until the ERP period expired.

We'd can't say how 12 months might affect the price he can obtain for the property.

I presume he doesn't plan to purchase another property when he sells this one? If he does, he should take a new mortgage with the existing lender and port the rate from the old one to avoid the penalties.