Stupidly took out a 5 year fix!

Jermaineg

Hi, I stupidly took out a 5 year fix last year. I now see that the rates are much lower and I've got a bonus as well. How do I find out if it makes sense to remortgage and leave this contract? I will owe a penalty of around 3% and my interest rate is 3.99%. TIA.

[Deleted User]

Whats your balance, payment, and term?

And what rate do you think you can access? 

Thrugelmir

3.99% ?  Which lender. 

getmore4less

3.99% suggests High LTV maybe adverse.
Post the following

Lender,
value of property (and purchase price),
Current balance,
Full term(to month),
Rate,
Payment(contractual and actual if overpayments),
date mortgage taken out and term(5years may not be 60months) in months,

Amount of ERC  overpayment left,
ERC rate,
Date of change to next ERC level,
Cash available to reduce amount owed,

You can then work out options.

Potential LTV will be a key element.

K_S

@jermaineg For a very rough idea, check out the MSE ditch your fix calculator https://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator/

Use the MSE mortgage finder https://www.moneysavingexpert.com/mortgages/best-buys/ to see what deals you may be eligible for.

Assuming you have a lumpsum to overpay from your bonus, incorporate that as well when entering sum owed.

A word of warning here, the "best rate" might not be available/applicable for your circumstances/scenario. Run it past a broker or check with the lender to ensure you meet criteria. Also, if you're in the first year of a 5 year fix, the 3% ERC doesn't sound right, so do check your offer document to make sure you've got that right.