Should I Refix Early

MakingUpGround

Hello, adding to this thread as i'm in a similar situation but we have a 5K exit fee! 
have another 12 months (end of sept 23) until we can exit fee free but thinking of doing it.
We have 90k o/s over 23 years. Good loan to value rate (about 45%).
What do you guys think?
Genuinely appreciate some advice. 
Are rates predicted to stay high for some time?  x

CSL0183

MakingUpGround said:

Hello, adding to this thread as i'm in a similar situation but we have a 5K exit fee! 
have another 12 months (end of sept 23) until we can exit fee free but thinking of doing it.
We have 90k o/s over 23 years. Good loan to value rate (about 45%).
What do you guys think?
Genuinely appreciate some advice. 
Are rates predicted to stay high for some time?  x

The Golden question. 

We have an issue with the £ to $ rate. 
We have an issue with Gilts rocketing

We have an issue with inflation
We have an issue with the Ukraine
We have an issue with Energy

These are not short term fixes. 

Our government are looking like they are being reckless, there’s a GE in 2024 and the polls are showing the Tories will be kicked out so we have that to come also (uncertainty) 

Your ERC is high and your mortgage balance is relatively low so couple that together I’m not sure it would be worth it as it would take quite a while to recoup that £5k (plus that additional on the monthlies between now and next Sept). 

You may be able to cope with an SVR up at 9-10% for a year or so (Let’s just say Sept 2023 to Sept 2024) and still be better off when factoring that £5k+ Into your additional payments at that time. 

Not sure what I would do personally, the ERC is high making it a difficult decision. 

london21

If you want some certainty, might be wise switching to fix 5 years.

There are at least 2 more increases before the end of 2022. 

pippinpom

Should I be going back to Santander and asking if they didn’t give me the early exit fee? She told me there was a fee of £999 our last fix was only for a year so maybe that’s why it’s lower than everyone else’s ?