Pay exit fee to get better rate now

Ricardo1974

My mortgage is £140k remaining with a 40% ltv rate so can generally access better deals. My fixed rate is due to end in October. Is it worth taking a hit on exit fees now to get lower interest rates on current deals, knowing the interest rates are looking like they are going to rise, potentially quite quickly. My provider advised to just stick it out but really not sure. I will be looking at a 5 year fix. Thanks. 

Thrugelmir

To make meaningful comparisons you'll need to provide a lot more detail. 

george4064

What’s your current interest rate?
what would new interest rate be if you redeem and redid today?
How long would new fix be for?
What would the ERCs be if you redeem?

etc etc…

K_S

Ricardo1974 said:

My mortgage is £140k remaining with a 40% ltv rate so can generally access better deals. My fixed rate is due to end in October. Is it worth taking a hit on exit fees now to get lower interest rates on current deals, knowing the interest rates are looking like they are going to rise, potentially quite quickly. My provider advised to just stick it out but really not sure. I will be looking at a 5 year fix. Thanks. 

@ricardo1974 If you're considering a remortgage (new lender) - most mainstream remortgage offers are valid for 6 months so with a fix ending in October, you should be able to secure a rate now. FYI rates are secured when submit a full application. With lenders like Nationwide, you can even 'reserve' a product for 90 days by doing a DIP without having to put in a full application.

If you're only considering a product-switch/product-transfer/rate-switch (staying with the current lender) then how soon you can 'secure' a rate will depend on the specific lender's policy.