Should I switch to a new fixed rate mortgage early

Zappashouse

Hi all, this is my first post so bear with me. I have 4 yr fixed nationwide mortgage 2.59% that finishes March 2019. Mortgage to repay is £65000 on £300,000 house. I want a new fixed rate mortgage and I like the nationwide ones that have no fee. There is one 4yr fixed at 2.19% no fee. If I switch mortgage before Dec 2018 I get an early redemption fee of 1%. My question is would you move to it now before the potential interest rates rise in May and pay the early redemption or would you wait till Dec and not have to pay redemption but risk the fixed rate increasing. All advice welcome

AnotherJoe

The rate is likely to increase by 0.25% at most So you should be able to do the maths.

On a simplistic level, since 0.25% is one quarter of the 1% ERC, and since it's a 4 year fixed, it would seem to be a wash so unless you think there will be another rise between May and December either don't bother or flip a coin.