Remortgaging early do I take hit

Bugspudsmum

Hi all
Fixed ends Nov 22, current rate 2.09%
Do I take hit of 1% & cashback repay in hope of getting lower interest rate as we overpay quite a bit or sit it out till Nov.
Quick search says could knock 18month off with same repayment figure

Tia 

K_S

@bugspudsmum You'll have to crunch the numbers but unless rates rise by a lot before June (at which point you will be able to apply for a remortgage offer which will be valid for 6 months), I would be surprised if you would save enough to justify paying a 1% ERC and incentives for remortgaging 6-7 months before the end of the fix.

If you haven't come across it already, there's an MSE ditch-the-fix' calculator here but please do keep in mind that it's a very rough indication only based on a lot of assumptions https://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator/

dimbo61

Hell No 
Don't pay your lender one penny more than you need to.
You can overpay by 10% each year.
If you have any spare money after this then look at savings accounts some now pay 0.75% till November then make an overpayment.

K_S

1.5% even, with the Chase saver 
https://www.moneysavingexpert.com/news/2022/03/jp-morgan-s-chase-launches-new-saver-account-with-1-5----here-s-/

steampowered

You are proposing to pay 1% of your mortgage balance, in order to save interest for about 6 months.

Back of the envelope maths says that to make it worth paying 1% to save 6 months of interest - the new rate would need to be about 2% lower than what you are paying currently.

0.09% mortgages are not available - so you are surely better off waiting for the fix to expire. 

ACG

Some mortgage lenders will provide a 6 month offer, some will even extend by a month. 
You could find a lender who will provide a 6 month offer at the end of the month? No ERC to pay and secure a rate based on next months rates rather than the end of the years rates.

getmore4less

It not just about saving the ERC over the remaining term.

Its what you could save over the full period of the new fix and that depends on a future unknown rate(can be calculated)

MSE calculator is not a lot of use for a full number crunch.

With being close to being able to secure a rate you can use when ERC free the calc would be based on just 1-2months differences which is very unlikely to be beneficial.

The time to look was when the ERC dropped to 1% when any savings would be at their max