Is it worth ditching 2 year fix, paying fee and getting a 5 year fix?

IAMIAM

180k on 75% LTV current rate 1.44%, due to renew in July 2023. Exit fee of 2%. Current cheapest 5 year fix for me is circa 2.3%. I am contemplating changing mortgage now before the 2.3 become 3.5% in a years time....is it worth it?

TheAble

It's a guaranteed 5-6k cost, vs a potential unknown saving in the future. I doubt I would do it, but I guess it depends on your view about the extent of future rate rises.

getmore4less

Insufficient information

Making a guess on the payment(full term) and fee for the products it would look something like.

Mortgage	£180,000
payment	£700	ERC/FEE
rate	1.44%	£3,600
new rate	2.30%	£999
Time	Years	months
Left on current	0	15
New fix term	5	0
amount left after(months)		15
Start	rate	End
£180,000	1.44%	£172,679
£184,599	2.30%	£179,336
amount left after(months)		60
£180,000	1.44%	£149,908
£184,599	2.30%	£162,609
Switch when ERC £0
Break even rate needed no fee and fee)		45
£172,679	3.404%	£162,609
£173,678	3.236%	£162,609

when your ERC drops to zero your would be ~5.5k behind not switching
and need a new rate of 3.2% or better