Should we remortgage early?

class2ldn

Hi guys, just been reading Martins money-saving email and it warns of mortgage rates going up.
We are currently with Halifax on 4.09% with 28 years and 9/10 months left.
They have an ERC of about 6k I believe as the mortgage fix isn't due to end until end of Sept next year.
Currently pay 1124 a month.
Just done a quick online valuation with nationwide which says our house is around 265k which is probably not far off as one was up for 270 a few doors down a couple of months back.
I've worked out that if we put the term down to 28 years now and remortgage we would still be under 90% ltv as we have 228000 left on mortgage give or take so even with the ERC we would be saving over 200 a month on the cheapest fix which on the best buy comparison is the coop at 903 a month and 1650 fees.
On go compare first direct and HSBC are even cheaper at 885 with 999 fee.
Issue is I've literally just been accepted for car finance so I'm wondering if it's going to make a negative impact, well it will do I guess but is it worth trying anyway?
Seems a no brainer cost wise but If we waited until end of September then we'd have no ERC and would probably be able to save another £100 at least but that's going on current rates so that could be wiped out if they do go up.
What do you think?
Worth a punt?

lee111s

6k fees to save £200 a month for 10 months plus have to find another £1350 for the application fee?

Doesn't take a genius to work out that's a saving of £650 (£2000 minus £1350 of application fee) vs £6000 of ERC's? Or am I missing something?

Rates are unlikely to go anywhere quickly.

According to the ditch your fix tool, you'd need a mortgage rate of 0.09% with. O fee to make it worthwhile. With the fee of £1650 you'd actually need a negative interest rate. S Good luck with that one.

class2ldn

Just edited to say they on go compare HSBC and first direct are even cheaper at 885 a month with 999 fee.

class2ldn

So you think stay put until September?

class2ldn

I'm not really looking at the overall cost I must admit, just what it would do to our monthly payments. 200 a month is still a lot cheaper per month regardless

lee111s

It would be complete lunacy to pay £6 fees to save a few hundred quid a month.

lee111s

class2ldn wrote: »

I'm not really looming at the overall cost I must admit, just what it would do to our monthly payments. 200 a month is still a lot cheaper per month

Execpt it's not £200 cheaper. It's £4000 more expensive over the ten months.

If you have that £4000 use it to overpay your current mortgage.

class2ldn

I guess in that sense it's obvious to stay put, was just thinking of the monthlies rather then overall cost.
September isn't that far away and on our current rate I'm sure we'd get far better anyway thinking about it.

lee111s

class2ldn wrote: »

I guess in that sense it's obvious to stay put, was just thinking of the monthlies rather then overall cost.
September isn't that far away and on our current rate I'm sure we'd get far better anyway thinking about it.

Exactly. They may go up slightly, but I suspect in .25 or .5 increments.

You can start to shop around usually 3 months before your fix ends to remortgage (or get a new deal with halifax) so really you only need to wait until the end of June. Usually once you decide in and apply for a product, the offer is valid for 90 days (depends on lender).

Glover1862

You almost always have to pay the ERC upfront, you can add the product fee to the mortgage but not the EPC. You'll be much better off waiting until Sept then doing a product switch, you'll not need to do another application and credit checks etc. Rates may move but not that much, it's mad to even think about moving to another lender even if you get accepted. HSBC are very fussy who they lend to.