Question re fixed rate mortgage

oliel

Hi I have a mortgage about £172k o/s Property worth about £265k.   22 years left My fixed rate runs out 31/5, I have been told I can lock in a new rate on 2/12.   My current rate is 2.49 - 2% redemption penalty - £3440 - would i be better of fixing now and paying that - I tend to fix in for 5 years My current monthly payment is £831 at the moment the best rate I can get is 4.12 switching with current lender with a £750 fee, which makes monthly payments £992 which is already £170 a month - over 5 years thats going to cost me £1300 more with redemption - but im wondering if I wait till december payments could go up another £100 and then it would be cheaper switching now- Any help greatly appreciated.

london21

Months ago would have been worth it, you are now so close to the date in which you can renew without a fee.

Next BOE announcement is on the 3rd November, lender have been increasing before this announcement is made as it will be going up.

CSL0183

The next BOE meeting is 3rd November where rates will inevitably go up again followed by another on 15th December.  

The Fed rate in the US is 3.25 and their mortgages are now at 6+, we look to be a couple of months behind them with ours currently at 2.25 and mortgages now in the 4-5 regions. 

£3,440 is quite a lot to stump up (The £750 fee is going to be there regardless so you ignore that) 

But yes over a 60 month 5yr fix; an extra £100pm is £6k so stumping up the £3,440 now would make sense. 

I think if you wait until December that 4.12 may well be 5+. You would have to work out the maths on both calculations to see if you can recoup that £3440 during the next fix. 

It’s a tough call.