Remortgage from same lender, while still under a fixed term?

tiredmomma

As the title says really! I still have over 2 years left on a 5 year fix with Halifax, but the rate is much higher than I would get from them now.
Would they be willing to let me sign back in with a new product, if I paid the ERP?
The amount I would save is worth paying the penalty, and tbh, I'm being lazy and I don't want to have to go to another lender if I don't have to!
Thanks.

dimbo61

Some lenders will say No but you can only ask.
Will it actually save you money ?
What is the ERC ?
Does the new deal have a fee ?
You could use " Whatsthecost " to work it out.
Add the ERC and mortgage fee if any onto the balance you already have when looking at the new mortgage deal 
See how much you would owe in say 2 years if your looking at a 2 year deal and also how much you will pay over the term 

tiredmomma

Thanks for your reply.

From what I understand, the ERC is 1% for each remaining year on the fix. I currently have 2 years and 8 months left, so would that be 2% or 3%? 

I have £51900 left on the mortgage, and I'm paying 3.29% interest on it.
The equivalent 5yr fix product on Halifax's website now is 1.61% with no product fee.

So, I think if they charge me 2% I will be a couple of hundred £ better off at the end of the 2 years, but if they charge me 3% I would be a couple of hundred worse off?

I am overpaying by 100-200 a month at the moment, which is something I will continue to do, but it just grates on me that I am paying double the amount of interest than I could have been!

Thrugelmir

tiredmomma said:

I am overpaying by 100-200 a month at the moment, which is something I will continue to do, but it just grates on me that I am paying double the amount of interest than I could have been!

That's the chance one takes with fixing.  Some you win some you lose. 

tiredmomma

That's true. It was the right decision for us at the time, with a baby on the way and no idea how Brexit would have affected things, so it may just have to be something we live with for a few more years!