Remortgage and Early Repayment Conundrum

jimbo83

Hi All

Got a bit of a conundrum to throw out for views.

Our current mortgage product ends on 31 Jan 2023.

We reserved a new rate with out lender last month on which we can complete from 1 November free of any early repayment charge.

Given everything going on I have enquired about completing on the new product asap as our lender is one who has been pulling products (although ours is fine as things stand).

We have been told there’s a £2.3k ERC if we complete now or early early next week instead of on 1 November.

What would people do in this position?

Cheers 

london21

To leave your current lender before the term ends (before 31 January 2023) will incur the fee.

If you stay with the same lender then 1 November date applies.

Your new deal if it ends after 31 January 2023 then you are good. 

jimbo83

london21 said:

To leave your current lender before the term ends (before 31 January 2023) will incur the fee.

If you stay with the same lender then 1 November date applies.

Your new deal if it ends after 31 January 2023 then you are good. 

We are staying with the same lender. 

Our lender seem quite relaxed and if we wait until 1 November then there’s no fee to pay as we’ll be transferring the new product within 3 months of the end of the current product.

My fear is something happens and they pull our product before 1 November. If that’s the case, paying a couple of thousand now to secure this really good rate would have been a better option. 

london21

jimbo83 said:

london21 said:

To leave your current lender before the term ends (before 31 January 2023) will incur the fee.

If you stay with the same lender then 1 November date applies.

Your new deal if it ends after 31 January 2023 then you are good. 

We are staying with the same lender. 

Our lender seem quite relaxed and if we wait until 1 November then there’s no fee to pay as we’ll be transferring the new product within 3 months of the end of the current product.

My fear is something happens and they pull our product before 1 November. If that’s the case, paying a couple of thousand now to secure this really good rate would have been a better option. 

The next BOE rate was due on the 3rd November. Some lenders are increasing before further announcements are made.

you will have to compare cost/benefit.