Remortgage now or wait?

Bennwaa

Hi, after some advice. My current mortgage deal ends April 2023. I’m considering remortgaging early and paying early repayment charges to get fixed rate and avoid future Bank of England interest rate rises. I’ve been advised by broker that  this would cost an overall additional £400 on mortgage costs. But would that be better than if I hold on until current deal ends and interests rates rise anyway? Seems like a gamble

getmore4less

How can anyone tell you that without the numbers?

Also on what basis has the £400 been calculated  given there is an unknown of what happens after April 2023 if you don't switch now.

if it is just the 12(11)months  that £400 extra could be swamped(depending on mortgage size) by a tiny rise in rates of ay the next 4 years if choosing a 5y fix

robertfleckney

I’m in a similar position to you, with my mortgage deal ending Feb ‘23. I’ve decided to pay the ERC and remortgage for a 5 year fix. 

I’m currently at 1.99%, and I predict that by Feb ‘23 I might have to pay much higher. I did a few basic calculations based on a rate of 2.99%, and over 5 years, it will have been worth me paying the ERC. 

Of course, rates might not shoot up, but at least I can control my mortgage for 5 more years and not have any nasty surprises. My feeling is that rate will start climbing steadily. 

Bennwaa

Yes I think that’s probably the decision I shall make 👍🏻