Fixed till June 2024.. remortgage now?

jsol150772

I’m on fixed rate until middle of 2024 , currently my early penalty stands at around £3300, with interest rates being touted as 4% by end of next year might it be an idea to remortgage now and pay the early repayment fee?

housebuyer143

Details about what rate you are on?

id311299

jsol150772 said:

I’m on fixed rate until middle of 2024 , currently my early penalty stands at around £3300, with interest rates being touted as 4% by end of next year might it be an idea to remortgage now and pay the early repayment fee?

That's almost two years from now! I am also very risk averse and just forked out £5800 in ERC, but my mortgage was up for renewal mid 2023. Buying yourself out of your current fix two years in advance sounds a bit extreme even to me Are you not better off using that money towards overpaying, and continue overpaying as much as you can?

london21

It depends on your risk appetite.

You still have 21 months left, if you don't mind uncertainty can wait to see what happens.

for me certainty, can fix for maybe 5 years but will cost the ERC. 

jsol150772

housebuyer143 said:

Details about what rate you are on?

Sorry , meant to put this in initial post, fixed 2.44% until June 2024.

MFWannabe

I wouldn’t change that much earlier; I’d be overpaying while on such a lower rate to get to a lower ltv by the time fix is up 

LoomThought

I think it depends on the outstanding amount. From your ERC your outstanding amount is I guess £150k which is not a huge amount.

If you can overpay a significant amount to bring down the future payments it also means that you can tolerate potential increases in your monthly payments. So you have some wiggle room.