Ditch and Fix?

Lewis7498

@cook0891 just checked my paperwork and mine is 1.5% of the balance not 1% how typical! But I’ll still do it 😊

cook0891

Lewis7498 said:

cook0891 said:

Lewis7498 said:

cook0891 said:

HeyGoogle said:

Got a similar sized mortgage with Halifax able to renew 1st Nov if I can get those rates will be over the moon was half dreading something like 6.5 to 7%. Don't think I'll be able to wait will ring Monday when they open. Fingers crossed.

Any luck? 

Ah thank you for replying! I wouldn’t of known about it if i hadn’t seen your post 😊

Yes my ERC is £1296 I have no idea why but maybe it’s because I’ve made some overpayments this year too so it’s a penalty??

She is calling back tomorrow to see if I want to go ahead and it is obviously so much better than 5.64% with HSBC!

I think I’d still be quids in if I took it early and paid the ERC, I just worry so much about leaving it until Jan/feb and wish I’d done it? How did you work out whether it was worth it with your ERC?

I suppose depends what on your contract but think mine was 1% (I will be honest didn’t check but actually sounds right thinking about it now) 

My other logic was if I was to move provider in May I would probably have to pay £1k product fee where as this was £0 and straight forward application as not changing terms. Made it nice and simple. 

I decided wasn’t worth the stress and anxiety that been causing me last few weeks, and would continue to do so until Feb when could move penalty free. My other thinking was if went up by £50pm over 3 years that would be £1,800 so minus £800 ERC still a grand better off. Of course, these all estimates on amounts. 

I did ring them before the mini budget and crisis so start of September and was offered even better rate and longer terms (as would to be expected at the time) but decided to wait, hindsight hey!! 

Ah hindsight! But still that’s an amazing rate the way things are so I’m glad seeing your post made me call up so thank you!

I guess things aren’t exactly going to go down anytime soon and like you say I worry excessively (daily!) and have such anxiety so I may as well just do it.

Its so weird but my ERC is 1% but my annual mortgage statement says £1296. No idea how it’s worked out when I have £81K left?! Will ask tomorrow!

Did you know instantly you wanted the 3 year fix instead of the 5?

Thank you for taking the time to reply.

Are we the same person?! 😂

I was going to bed every night for last month wishing I had just took the 3.5% when offered it early Sep. So when I was offered it again (well tad more but nothing like 5.5/6% was expecting) it was snap their hands off time. 

My % wasn’t much less so not a massive increase (3.19%) so extra £20 per month. 

Originally before the mini budget I was tempted with 5 or 10 years at 3.5% as like I say used to paying that amount. When offered it last week I was tempted with 5 years but with everything else going up I wary of spending the extra (I know it was probably only another £30)

I am also in a position where in just under 3 years time I should/hopefully have a lot more disposable income which will mean even if the rates haven’t dropped down and even if higher than currently are (as long as not silly) I will be able to afford it (plus the mortgage amount owed will of course be less) 

So I suppose depends on your own circumstances. Both are very good rates. I note your current % is less than I was paying so assuming any increase will be higher than mine and of course I don’t know your personal circumstances. 3 was right for me but 5 might suit you better 😊

Also just seen your message about 1.5% ERC, annoying but at least that explains it. 

Let me know what you decide. 

etherealho

cook0891 said:

Hi. My current deal with Halifax expires May 23, so I can move to a new rate with them from Feb 23 with no charges. 

However, I can switch now and pay £800 repayment charge. 

Currently paying 3.19% and offered a new 3 year fix at 3.69%. This is by far the cheapest I have seen. Will increase monthly payments by £20 per month. 

With rates expected to rise before Feb, do people think it is worth paying the £800? 

I know it is so close but my logic is if they go up and up and say it’s an increase of £50pm. £50 x 36 = £1,800 so even with £800 be saving £1,000. (I appreciate £50 just a random figure) 

any advice appreciated as going out my mind worrying (suffer from bad anxiety!) 

Thanks. 

How recent did they offer this rate? Was this direct or via a Mortgage broker?
I got my mortgage broker to check and all they offered couple of weeks ago was 4.72% on 2 year fix!

Lewis7498

etherealho said:

cook0891 said:

Hi. My current deal with Halifax expires May 23, so I can move to a new rate with them from Feb 23 with no charges. 

However, I can switch now and pay £800 repayment charge. 

Currently paying 3.19% and offered a new 3 year fix at 3.69%. This is by far the cheapest I have seen. Will increase monthly payments by £20 per month. 

With rates expected to rise before Feb, do people think it is worth paying the £800? 

I know it is so close but my logic is if they go up and up and say it’s an increase of £50pm. £50 x 36 = £1,800 so even with £800 be saving £1,000. (I appreciate £50 just a random figure) 

any advice appreciated as going out my mind worrying (suffer from bad anxiety!) 

Thanks. 

How recent did they offer this rate? Was this direct or via a Mortgage broker?
I got my mortgage broker to check and all they offered couple of weeks ago was 4.72% on 2 year fix!

@etherealho this was direct with Halifax. My broker was also sneaky and said that Halifax weren’t offering anything, it wasn’t until I looked on here and saw @cook0891 post that I called them and they offered me 3.69!

Am still mulling it over though as I have a £1222 ERC and 2.09% at the moment but also don’t want the next few months panicking about it so having a callback Monday to take the offer I think

etherealho

Thanks. I think the 3.69 is only being offered to sub 200k or 300k level mortgages. 

You could probably put it on a spreadsheet and see the total amounts over 3 years and compare it when you do not pay the ERC but have higher interest rates such as 5, 5.5 and 5.75%.

cook0891

etherealho said:

Thanks. I think the 3.69 is only being offered to sub 200k or 300k level mortgages. 

You could probably put it on a spreadsheet and see the total amounts over 3 years and compare it when you do not pay the ERC but have higher interest rates such as 5, 5.5 and 5.75%.

Hi. Yeah, apparently only an offer since 1/10/22, and to certain customers. 

It is worth a ring if something you might be interested in. I kind of stumbled across it by luck but glad I did. 

Lewis7498

etherealho said:

Thanks. I think the 3.69 is only being offered to sub 200k or 300k level mortgages. 

You could probably put it on a spreadsheet and see the total amounts over 3 years and compare it when you do not pay the ERC but have higher interest rates such as 5, 5.5 and 5.75%.

What’s sub 200K 300K mean? Above or below?

I did the calculations and it’s still cheaper with the ERC and rates would have to be at 4.55% or less for it to then not be worth doing 👍🏻

etherealho

Lewis7498 said:

etherealho said:

Thanks. I think the 3.69 is only being offered to sub 200k or 300k level mortgages. 

You could probably put it on a spreadsheet and see the total amounts over 3 years and compare it when you do not pay the ERC but have higher interest rates such as 5, 5.5 and 5.75%.

What’s sub 200K 300K mean? Above or below?

I did the calculations and it’s still cheaper with the ERC and rates would have to be at 4.55% or less for it to then not be worth doing 👍🏻

By Sub, I meant below..I called them and they did not offer me that rate even though I am at less than 60 pc LTV.

If it's cheaper with ERC then if I were in that situation, I would take it.