Nationwide mortgage switch ?

Moneymaid

I have a mortgage remaining of @58k . Current deal ends end of Feb 2023. Have 1.99 % fixed rate. Obviously im concerned re rises in base rate and how bad this might be by next February. ERC would be around 6k. I had anticipated paying my mortgage off within the next 8 years.  So I was wondering as things stand is it beneficial to come out of my current deal, pay the ERC and get a new fixed rate ? All advice gratefully received. 

Thrugelmir

Are you currently overpaying your mortgage by the maximum permissable amount? 

Moneymaid

No. Should I be ? I was thinking of doing this. Also  i think i might have got my figures wrong on the  Nationwide website it said It would be £435 overpayment /ERC fee rather than 6k ...not sure if I got this right though. 

Moneymaid

Also next year I will be in a better position to add some moneynto my mortgage and thereby cut down the overall amount owed. 

simon_or

There is no way the ERC is 6k on a 58k mortgage, especially in the last year of the fix.

You don't have to go all the way to Feb to fix. With Nationwide I think you can select a product 4-5 months before end of the fixed term, so September or October.

If you are considering a remortgage, then the offer is usually valid for 6 months so you can apply in August.

So unless you think that rates are going to jump hugely in the next 3-4 months, I doubt the numbers are going to add up with the ERC and losing your current rate.

Moneymaid

Thanks Simon for the guidance. Sorry  I misinterpreted the Nationwide info on ERC.