Remortgage and pay fee or not?

Plant1980

Hi all, im getting myself in a financial confusion here, so wondered if anyone could help, our fixed rate mortgage is 3.49% and we have it for another 2 years and 2 months, i was debating paying the 5% fee and moving to a lower rate and reducing the mortgage term, but im not sure if it is financially beneficial, our LTV is below 60% so ill detail the dilemma below

currently on 3.49% for 2yr 2mth with 13 years to go £3000 exit fee (£561pm payment)

thinking about 1.69% (no fees) reducing term to 7 years (£759pm payment)

or sit out remaing 2 years pay off the allowed 10% per year overpayment instead

i know the interest saving over the two years wouldn't cover the £3000 fee but would the reduced term counter that..or am i best saving and waiting the 2 years ect?

Any basic help would be great!

lee111s

Wait it out and over pay as much as you can. Over paying will essentially reduce the term as the mortgage balance will be cleared before the mortgage end date.

Plant1980

Thanks for the reply we are allowed to overpay 10% each year, we already have done, and would save again to pay another 10% in January, i just couldn't get my head around the 3.49% and the saving to be made of we reduced the term now, i.e, if we paid the 3k fee on the 1.69% mortgage in two years we would only have 5 years left ect