Leaving current mortgage early consequences

Skintsaver

Hi all,

I’m after some guidance on my mortgage situation and the potential consequences of switching early.

My current fix with Nationwide is 0.94%, ending 1st November 2026.By the time the fix ends, I’ll have roughly £69k remaining.

I’ve been looking at First Direct, mainly because they allow you to lock in a rate up to 6 months ahead. If I were to start the process now, I’d be looking at an early‑repayment charge of around £500 with Nationwide.

My questions:

1. Is it worth switching early and taking the £500 hit to secure a rate now?
   Rates seem unpredictable, and I’m trying to work out whether locking something in early is sensible or just unnecessary stress.
2. What happens if I start the switch to First Direct but then change my mind?
   For example, if a better deal appears with another lender in a few months:

• Would I lose money on valuation fees?
• Would I be on the hook for solicitor costs even if I don’t complete?
• Would pulling out negatively affect my credit score, since they’ll have already done a hard check?

I’m trying to understand the real‑world consequences before I start anything?

grumpy_codger

1. Possibly - if you expect FD rate to rise noticeably . Do you?

And your savings over the remaining years have to exceed £500 plus new mortgage arrangement fees (if any) - use a mortgage calculator.

Nasquerns

Honestly with a 0.94% fix until Nov 2026, I probably wouldn’t rush it - that rate’s insanely good. Unless rates jump a lot, paying £500 now just to lock something early might not really move the needle.

kingstreet

You can normally expect a fee-free remortgage with free legals.

Apply, get your offer and tell the legal firm to wait until you confirm you want to complete. If things go really pear-shaped you can continue with the remortgage.

If things settle down, you can do a Nationwide rate switch to start when your current rate ends and abandon the remortgage; or see if FD are offering a lower rate you can switch to.

Skintsaver

So after posting this I applied to first direct I haven't had any email confirmation is this normal? I set the transfer date 6 month's in advance.

Also rates this morning have increased FD now being 4.12% over the next 5 year's that alone will save £540 not massive but pay for the ERC.

I guess if I did go through I'll need to work out what I'd save by having my mortgage at 0.94% for 2 months longer. I'm sure rates will be going up depending on this war

IAMIAM

https://forums.moneysavingexpert.com/discussion/comment/81913009#Comment_81913009

Have FD rates increased? look the same to me

Skintsaver

https://forums.moneysavingexpert.com/discussion/comment/81913742#Comment_81913742

Mse best buy site is saying they've increased but their own site is the same. Maybe they're going up Monday?

IAMIAM

Ahh correct, I think so. First Direct follow HSBC, who increased Friday. I think I will stick with the Lifetime tracker at 4.24% that seems to still be available for now