Remortgage early

Kamsi

Hi, I am completely out of my comfort zone with mortgages and interest rates so apologies for questions that might seems little silly. I am trying to figure out our next step.

We are due to remortgage in Feb 2023 however I wanted to look into this early to establish the best approach due to rising interest rates. 

What would I need to know before making decision?

I usually rely on excel if that's agrees with my budget than I will make a decision.

We originally took the mortgage in 2018 of £161k. We took holiday payment during covid and now our outstanding mortgage is at £150k. I am a little concerned that in nearly 4 years we have only paid of £11k.

Any advise would be much appreciated. 

[Deleted User]

If you're worried about rising interest rates, overpay as much as possible.

Taking the payment holiday has put you behind where you should be, so start making up lost ground.

Whether it's worth paying to break your current deal will depend on the numbers, not least the ERC.

Thrugelmir

The mortgage payment holiday has set you back. Overpay by whatever you can afford. However the small the sum is, over time it will snowball.