Please help me understand my mortgage

[mortgagescrewed]

Hi,

I'd really appreciate some advice from people who know about mortgages...

I'm in a flat panic about mortgage rates and don't know what to do for the best. I'm on maternity leave but usually earn £26,000 part time DH earns £65,000 full time, two children under 3 who will both need to be in childcare at least 2 days a week from April.

House value is £567,000
We have £265,000 left to pay over 20 years
So LTV I think 47.97%

Our current mortgage which was a 5 year fix at 1.89 expires 31st March 2023 and it seems like this is the worst possible place to be as most products only start from end of Feb. Get out fee from Nationwide is £2700

Best we've found/been offered is 10 year fix at 4.84 with Nationwide or 4.43 with Lloyds

We have a mortgage broker but it seems slow progress. What should we do?

What would you do?
I feel a bit sick. We are going to really struggle to afford an extra £400 per month and it's only going up and up.

Ps, I'm sure someone will come on and say 'not another mortgage thread' so sorry in advance.

Sorry about this OP, I know mortgages have been causing lots of people stress recently! I’d suggest you also post this on the MoneySavingExpert forums, if you’d like another opinion, as the posters there are very helpful and the forums there are very specialised in finance matters (although Mumsnet is also a good place to post!) Also suggest you re-post this in the Mumsnet Money Matters forum, as the posters there are also very knowledgeable and helpful.

Whats the best fix you can get right now assuming you pay the exit fee of 2700?
To access that you need to see the cost of getting it as the 2700.
So new fix equals what monthly repayment increase plus the 2700 for term of the fix.

Make sense? Either way you are going to pay more but if you can fix now even taking 2700 as the cost you still might be better off. So you need to do a few calculations:

Fix at 4.5, 5, 6 % - what are monthly repayments? Remember you have to pay the 2700 once only.
I imagine 6% will be the reality for the UK in Feb.

Im in Ireland and still paying 0.95% - UK is in the shit so fix as fast asyou can and dont be put off by the 2700.

Can you extend your term when you remortgage? If you change this to 25/30/35 years it will lower your amount per month. You can then switch it to a lower term in years to come when you don’t have high childcare fees.

We are in a similar boat and speaking to a mortgage advisor in a few weeks.

Note that you might save a small bit percentage-wise by going elsewhere. But sticking with the same lender has its benefits - usually no further credit checks etc, no new valuation needed on the property.