Mortgage ends next year - pay ERC or wait?!

daisy134

I have shared ownership mortgage on 40% of my property. My current fixed rate deal of 1.69% is due to increase in August 2023. I'm too early on to be able to get a new fix right now but I'm worried that by the time I renegotiate a mortgage, interest rates and deals will be worse than they are today.

I'm currently with Barclays and they have favourable rates for existing customers. Should I get out of my current fix and pay the fee to move to a higher (but better than the rest of the market) with Barclays or wait and see what happens? My ERC is £1700.

Not sure what to do! 

CSL0183

If you listen to the experts, Base rate will likely peak around 6% which will mean circa 8% for your next fix. Your mortgage is ending at the worst possible time where the peak is due. 

If you can afford an 8% mortgage rate then hold out, if you want to fix at lower rate then now would be the time with an ERC penalty. Only you will know