Mortgage - Variable tracker

[Atissue123]

Unfortunately when we last re-mortgaged we went on a variable tracker (rate was v low) but obviously now it's going up and up and up! We took it out a year ago and have another year left. I am kind of glad i only went for a 2 year one. We did this as it's portable and had been planning to move but no longer are planning to move.

The mortgage was £1070 p/m when we took it out, now it's £1350 and the illustration says it 'could' go up to £2400. Thankfully we are in a relatively ok financial situation so worse case scenario we can pay it but obviously hate the idea of doing so.

What should I do to plot my escape from this? I assume we can't leave early without a penalty but is it worth investigating fixed rate options? We owe about £260k and our property is worth £700k but may go down obvs this year. Thankfully we haven't mortgaged ourselves to the eyeballs but it's still a major concern!

Sorry, should have said the initial rate was 1.09 for 2 years, i think it's now at 3.5%.

First thing is to find out what the redemption penalty is.
I don't think you will find a fix at 3.5%, so any fixed mortgage is likely to have a higher monthly payment again.

All you can do is check your paperwork and look at the early exit fee. Then compare this to the difference between your mortgage and and fixed deal.

Trackers are all good when the rates are low but you are always gambling on them staying low. Not really much you can do when the interest rates move against you.

Pays your money and take your chance.