Repay ERC and switch, or wait

mwahahaha

Hi everyone, I was hoping to get your opinions on what we do with our current mortgage and the economic situation.

We have a 2 year fixed-rate repayment mortgage, who’s fixed rate will end in 2 phases (as we moved house, ported the mortgage and added a second mortgage product with the same lender last year to borrow the difference on our new house) - product 1’s ERC’s end in June 2023, product 2’s ERC’s end in December 2023.

The plan was… wait until product 1’s ERC’s end in June 2023, then pay the remaining ERC on product 2 (£2k, painful yes, but factored into costs when moving house - always knew this would be the case), then combine the two products into one new mortgage fixed back in for most likely 5 years.

Of course with the economic chaos we’re all in and the BoE upping the base rate at each MPC meeting, it’s got me wondering if we should bite the bullet, pay both ERC’s and re-mortgage sooner rather than later to lock in a lower rate than would be available in 12 months’ time.

Our two current products have different interest rates - the combined average I’d put as 2%. The combined ERC charges today to end both products would be just over £7k (compared to £2k in 12 months’ time).

From initial enquires, 2.5% on a 5 year fix seems achievable now, that would increase our monthly repayments by about £200 - but, could remortgaging now, paying their ERC’s and fixing in for 5 be better for us over 5 years than waiting for the ERC to drop next year and having mortgage rates at say 5% or ? Over the next fixed rate term.

Your thoughts are greatly appreciated, thank you, I’m sure there will be bits I’m missing so another viewpoint is greatly appreciated. I’m not taking this as financial advise, just interested to see where others sit on the question and see if there are angles I haven’t considered.

Thanks!