Re-mortgage help

anticlaus105

We are currently fixed at 2.83% until 1/4/21. After 1/4/20 there is a 1% redemption charge. Current balance is ~£128k with around 47% LTV.

When we took the mortgage out (our 1st) in Jan 2016 I wanted to fix for 2 years, as I thought rates would fall, but my wife and the banks adviser pushed for 5 years. 

I've never re-mortgaged before and want to do my homework. I can see 5yr fixed rate for 1.5%-1.8% with many lenders. This would be a saving of 1%, so around £1200 in interest over 1 year, and would somewhat offset a redemption charge. Of course, there are fees and I would effectively be losing 20% of the fee by switching 1 year early. Saying that if rates rise it may prove worthwhile, but then they could fall. 

Are there other costs to re-mortgaging? E.g. survey, valuation, solicitors? 

Would it be worth considering a switch 1 year early, or am I better to wait until 04/2021? How long does it take to switch? Can it be timed to happen exactly on 1/4/21 and if so when would I need to start the process?

kingstreet

The remortgage deals you look at will specify rate, product/arrangement fee, any valuation fee and if legal costs are paid for you. Until you have prepared a full picture of what lender/product you choose, you cannot hope to determine if the switch is worthwhile.