Remortgage early

Bri79

Hi,
looking for some advice please. Our current fixed rate mortgage comes to an end in Dec 2023, the rate at the moment is 2.10% and the balance is £223k. We are nervous about what rates may be available at the end of next and we’re debating remortgaging now to get a good deal. The best deal at the moment is 2.74 which will increase our mortgage by £100 a month and we will need to pay an ERC of £4500 however we are worried that waiting could mean our mortgage payments will go up a lot more than that. Does anyone have any words of wisdom as we’re struggling to decide what to do? Thanks in advance.

kingstreet

As a borrowing member of the public without my broker hat on I would say if you were going to do that, six months ago would have been a good bet. Now, I would stick with what you have as you will be c£6,000 to the good as you enter January 2024 and an election should be close, if not just passed.

Ballymoney

Intrigued to know who that 2.74% mortgage is with and for how many years? I'm not seeing anything under 3% for new applications.

The 3.1%+ products I'm seeing available now, I'd have to agree with kingstreet. I'd keep the £6k and put it towards reducing your new mortgage in 2024.

Bri79

The deal is with Santander and it’s for five years. We don’t actually have the £5k, we’re adding it to the mortgage.

Ballymoney

2.74% 5 year fix definitely looks to be a market leading rate right now. I'm not sure I could justify spending £6k more over the next 18 months to secure it though.

Bri79

Our main concern is that we have two disabled children that I am carer for, we won’t be able to increase our earning potential for a couple of years and we’re worried about a) affording the mortgage if it goes up £300 odd and b) our income not being enough to be able to get a good deal and being stuck with current lender in a variable rate.

london21

Check if they allow you to add the ERC to the mortgage, some lenders want the fees upfront. 

penners324

The best rate a week ago was 2 74%, it's now 3.14%

Bri79

Yes they will allow us to add the fees to the mortgage and the interest going up as quickly as they are is what makes me nervous about what will be available at the beginning of 2024.