Remortgage Confusion - HELP!

mde1707

Going to try and be as brief as possible.  When rates started going bananas we were just outside the 6 month window to secure a deal but Better.co.uk said they could sort something and just get the deal extended.  
Our current mortgage ends 31 Dec so new one needs to start on 1Jan.
Better secured a deal with Santander at 4.74% on £350k for 2 year (£2,142p/m).  However, Santander have said the offer ends on 5th Dec so we'd be liable to pay Halifax a £3,500 early repayment charge.  I've complained to Better and they've said that this would be taken off the redemption figure so might not be that much, especially as we've repaid £100 per month over 2 years that we've had our current deal.
I've spoken to another broker (L&C) to make sure we have another deal in place the best they can do is with our existing lender Halifax which is 2yrs at 5.99% (£2,383).
I've lost all trust in Better, are they right that my overpayments will make a difference to the redemption figure?  I'm confused about which deal is the better one now?  Any thoughts?

grumbler

mde1707 said:

I've lost all trust in Better, are they right that my overpayments will make a difference to the redemption figure?  

I'm no expert, but I think they are talking nonsense. Even if repayments go towards the early repayment charge, it's your loss as otherwise they reduce your mortgage balance.
If the charge is proportional to the remaining balance, then overpayments do reduce it slightly, but the effect is miniscule.

I'm confused about which deal is the better one now?  Any thoughts?

Do your maths - what will cost you more in total over years - lower rate with the ERC or higher rate without.

In the first year alone 1.25% difference in the rates for £350K mortgage will cost you more than £4K . As simple as that.