My mortgage is due to renew next August 2023, the earliest I could secure a new mortgage offer is April 2023. I am currently on a 2 year fix at 2.64%, the early repayment fee is £1800. I have contacted my mortgage broker who advised that the cheapest current 5 year fix is 3.9% with my lender. The last time I remortgaged my broker advised that rates are likely to come down in 2023 and therefore fix for two years - I'm now kicking myself that I didn't fix for 5 years.
If I end my current deal, I could add the ERC to my current mortgage and my payments would be £60 extra each month, based on the current Bank of England base rate. Perhaps I watch too much news as it's all doom and gloom, but having visited the Bank of England website, they are set to meet on 4 more occasions (November, December , February and March) before I'm eligible to secure a new deal without paying the ERC.
I'm not sure whether it's best to wait and see what will happen next year to avoid paying the exit fee. My broker thinks rates will come down next year, if the government and banks are able to get inflation under control. However, I'm not sure whether inflation will get down to 2% by next April and if there are 4 successive interest rate increases, my mortgage payments will increase by much more than £60 a month.
AIBU - Wait until next August 2023
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AIBU?
Shall I pay an Early Repayment Charge to remortgage now or wait and see what interest rates will be?
11 replies
Optimist2020 · 28/09/2022 21:24
OP posts:
Am I being unreasonable?
11 votes. Final results.
POLL
You are being unreasonable
18%
You are NOT being unreasonable
82%
TooMuchToDoTooLittleInclination ·
28/09/2022 22:39
alexdgr8 · 28/09/2022 22:25
act now if you can.
things are going to get worse.
let's all try to be compassionate; there will be many who cannot cope.
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