Re-mortgage help please

StrawberryMoon

Hi,

I just have a few questions regarding re-mortgaging as I am unsure.

A bit of background, myself and my Partner bought our first home in Oct 2013. The mortgage we took out was a 2 year fixed rate at 4.49% and after 2 years will increase to the standard variable rate of 4.79%.

We had an independent mortgage advisor who helped us with the mortgage as we had no idea (and still don't!) and the plan has always been for us to get in touch with him again when the 2 year fixed deal is up.

Today I have come home to a letter off our mortgage provider, offering a new mortgage deal which we can switch to in the next month, 2.99% & no early repayment charge, but we have to apply before 12th June. The calculations show we would save around £80 per month.

So now I'm really confused on what to do. Do we wait until Oct and see if there are any better deals (Currently there are, we could save around £120 per month) or go with the offer our mortgage provider has offered? I'm confused as to what the early re-payment charge is, as it states this charge only applies until Oct. Does it mean if we changed mortgage lenders before Oct then we would have to pay the charge? but if we change any time after the fixed deal then there is no charge to pay? Its 3% so a sum I'd rather not have to pay if possible.

Also, what does re-mortgaging entail? I assume we would have to have the house valued again to confirm what equity we have & pay for any surveys and/or product fees?

Sorry for the long winded post and all the questions I'm just a bit confused on how to decide which would be the best option. I'm also a bit suspicious that they have offered a lower rate with no early re-payment charge, what would be in it for them? We are happy to wait until the fixed period is up & look at other lenders when the time comes I just want to be armed with all the facts and figures to make the right choice.

Thanks in advance

StrawberryMoon