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Stick with a fixed mortgage til end of term (May 2023) or pay ERC and get new fix now?
Subhadassi
Posts: 3 Newbie
We have a 142500 mortgage @ 1.74% fixed til 1.5.23, 13 years to go.
We could shift to another mortgage with Natwest @ 2.64% fee-free fixed from 15.5.22 for 5 years, 13 years in length if we pay an ERC of 1% - 14250.
We're considering the shift as Interests rate are going up and by the time we can get mortgage with Natwest without paying the ERC (110 days before the mortgage is up) or with anyone else, the interest on a 5 year fix may be much higher than present.
Does anyone have a reliable crystal ball or a clear sense of whether to stick or twist?
From what I've read, it seems to not be clear which is the best, and will all depend on what the increase in the BoE interest rate will do to the economy, what inflation rises to, what impact energy costs have going forward, the war in Ukraine, etc etc.
Thoughts most welcome! Thanks.
We could shift to another mortgage with Natwest @ 2.64% fee-free fixed from 15.5.22 for 5 years, 13 years in length if we pay an ERC of 1% - 14250.
We're considering the shift as Interests rate are going up and by the time we can get mortgage with Natwest without paying the ERC (110 days before the mortgage is up) or with anyone else, the interest on a 5 year fix may be much higher than present.
Does anyone have a reliable crystal ball or a clear sense of whether to stick or twist?
From what I've read, it seems to not be clear which is the best, and will all depend on what the increase in the BoE interest rate will do to the economy, what inflation rises to, what impact energy costs have going forward, the war in Ukraine, etc etc.
Thoughts most welcome! Thanks.
0
Comments
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That's 10% not 1%.Subhadassi said:We have a 142500 mortgage
we pay an ERC of 1% - 14250.0 -
Sorry - my error - the ERC is 1425Thrugelmir said:
That's 10% not 1%.Subhadassi said:We have a 142500 mortgage
we pay an ERC of 1% - 14250.0
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