2 months into a 3 year fixed rate, rates have significantly dropped and lender won't budge

NicLou2020

blue_max_3 said:

Halifax gives you Xtra. About 0.38% extra!
See if paying the £3200 fee still works out better. If you have a larger mortgage, it may still be worth it. But otherwise, it isn't much at all really. You can overpay to mitigate it too.

Thank you for your comments. I've used the calculator on here to see if it is worth me moving and it's saying I'd need a rate of 1.78% and that's assuming that legal costs / arrangement fees are taken care of. Again, sorry for my naivity - how would overpaying mitigate the extra cost from the rate?

blue_max_3

NicLou2020 said:

blue_max_3 said:

Halifax gives you Xtra. About 0.38% extra!
See if paying the £3200 fee still works out better. If you have a larger mortgage, it may still be worth it. But otherwise, it isn't much at all really. You can overpay to mitigate it too.

Thank you for your comments. I've used the calculator on here to see if it is worth me moving and it's saying I'd need a rate of 1.78% and that's assuming that legal costs / arrangement fees are taken care of. Again, sorry for my naivity - how would overpaying mitigate the extra cost from the rate?

If you overpay (usually 10%pa is allowable), then you'll reduce your mortgage quicker and reduce the impact of the slightly higher rate. Essentially, you'll be borrowing less at that rate.

getmore4less

It's going to need a full number crunch on any offers
my spreadsheet based on adding just the ERC 
£110,600 full term 22y10m 2.89%  ERC £3,312
with a payback periods of in case it takes a bit of time
2y10m 1.75%
2y9m 1.72%
2y8m 1.69% 
but once you dip under £100k Halifax will sting you and you will most likely need to move lender then anyway unless Halifax change policies.
That 2.89% looks like it could have been the < £100k rate not the over £100k-£250k rate.
60%-75% LTV < £100k 3y fix today is 2.53% which would seem about right for the base rate drops.
Any brokers here have the Jan Halifax rates to hand?

another note on fees don't assume the fees are not worth it because you have relatively small £100k ish mortgage
you will see a lot of rubbish about fees are only worth paying on big mortgages  it alos depends on the rate difference and payment
on £1k fee on £100k mortgage interest only needs a rate difference of around the following for different fixed terms(higher for repayment mortgages)
2 0.5%
3 0.33%
5 0.20%
10 0.10%