Mortgage - stay with existing provider or move to another provider

original1

A family member is asking about a mortgage where the fixed period is coming to an end in Jan 2023. The current provider allows them to see what's on offer re rate wise and I assume term wise within 4 months of the fixed period end date. They can start checking out the new rates and terms in September 2022.

Outstanding balance is £60,000 with 5 years to go. 
Rate is over 3%
ERC is 5% of mortgage balance

With Bank of England likely to raise interest rates again in the next week of so, is it worth locking in a new rate/term in Sept 2022 and stay with current provider or wait until January 2023 when they will be free to move to another provider or pay off the entire mortgage balance in full ?

penners324

Who knows what will happen in the next 7 months.

Why not look at other mortgage companies in September? It can take months for the legal paperwork on a remortgage 

TheMortgageExpert

New mortgage offers last for 6m from the date of application - so if the current deal expires end of Jan, look to place new mortgage if you can remortgage to another provider end of July 2022

Thrugelmir

original1 said:

or wait until January 2023 when they will be free to move to another provider or pay off the entire mortgage balance in full ?

Overpay now if there's money available. No need to wait. Check the limits allowed for overpaying though. 

original1

I hope mortgage rates don't increase too much in the next 6-12 months....

hoping current provider can do a good deal, otherwise there will be hassle of new setup costs/surveys/solicitors. 

overpaying sounds good if they can afford it. 

Thanks MSE

RelievedSheff

original1 said:

I hope mortgage rates don't increase too much in the next 6-12 months....

hoping current provider can do a good deal, otherwise there will be hassle of new setup costs/surveys/solicitors. 

overpaying sounds good if they can afford it. 

Thanks MSE

Our remortgage cost us nothing. We used free legals option, got a free valuation and chose a product with no product fee.

We secured our mortgage rate 6 months before our previous deal with another lender ended. 

Shop around. 

getmore4less

original1 said:

A family member is asking about a mortgage where the fixed period is coming to an end in Jan 2023. The current provider allows them to see what's on offer re rate wise and I assume term wise within 4 months of the fixed period end date. They can start checking out the new rates and terms in September 2022.

Outstanding balance is £60,000 with 5 years to go. 
Rate is over 3%
ERC is 5% of mortgage balance

With Bank of England likely to raise interest rates again in the next week of so, is it worth locking in a new rate/term in Sept 2022 and stay with current provider or wait until January 2023 when they will be free to move to another provider or pay off the entire mortgage balance in full ?

£60k with 5 years to go will limit choices switching in ~6month time.

3% is a high rate when was that taken out  why so high?.

Which lender and what rates are on offer now.

With only 5y to full term the payment will be £1k(0%)-£1.1k(3.81%) 
total interest over 5 years
0% £0
2% £3100 
3% £4,700
4% £6,300

Could start looking for a deal with a long validity period to set a base for when change times comes and pick then.
With a new lender a 5y fix with 5y term will be possible with current lender that probably won't be available as a product switch.

IF its Barclays(5% ERC) they have very generous overpayment limits so there may be options if there is other cash about.