? Move and pay penalty or stay

Just wondered what the general consensus is. I have a disability and will probably not be able to work more than another 8 years. My mortgage is 10 years. I have another year on my current fixed rate mortgage. Do I pay the penalty and get a good fixed rate ( try to reduce the years left) Or stay, pay no penalties and risk a higher rate?


  • Ramouth
    Ramouth Posts: 648
    First Anniversary First Post Name Dropper
    This might be one for the mortgage board.

    I would suggest you do some calculations and see how many percentage points interest rates would need to go up over the next year to make paying the ERC on your current fix worthwhile.  Then you can have a think about whether interest rates are likely to rise by that much over the next year.
  • LadyGnome
    LadyGnome Posts: 801
    First Anniversary Name Dropper First Post Combo Breaker
    You could have a look at the Ditch the Fix calculator
    Ditch: mortgage calculator - MSE (moneysavingexpert.com)

    See what the real cost to you of ditching early.  Check also if the ERC reduces each year.

    Its particularly hard to be certain about interest rates with Covid not quite over and done with.  You could look at what is being said about the Bank of England's commentary on interest rates.  
    Also check if your current provider allows you to lock in your new fix before the end of your old one.  I am with NWide and I could refix 3 months before the end of the old one.  So my old fix ended at the start of Oct 2021 but they have allowed me to refix for the start of Aug on a new 2 yr fix at a lower rate.
    MortgageStart Nov 2012 £310,000
    Oct 2022 £143,277.74
    Reduction £166,722.26
    OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
    2022 MFW #78 £10200/£12000
    MFiT-6 #28 £21,772 /£75000
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