worth paying early exit fees from mortgage due to end in Aug?

[ladybirdsarelovely33]

Our 5 year fixed rate mortgage expires in Aug. What with interest rates likely to rise soon, we feel that we will not get as good deals then that are available now with mortgage providers. I think we will have to pay £4k in early exit fees and our mortgage will be £190k for a 15 year term.
Should we wait until it expires? Or try and do something now?

Who are you with? We are mgage free now but were with nationwide for years. You used to be able to agree a new deal months in advance then swap over. Might be worth speaking to current lender

God no, don’t pay the exit fees now. You can secure a mortgage deal now and have it waiting for when your deal expires. Most mortgage providers secure deals three months in advance but I’ve seen a lot offering six months in advance. It takes a good few weeks to remortgage too. Have a look at London and Country mortgage brokers.

Most lenders allow you to change 3 months prior to deal ending. Nationwide let you reserve a rate 4 months prior to deal end with a start date of 3 months before end of deal, so for example you could reserve a rate in April for it to start May. £4K in ERC plus any potential product fee means there’s going to have to be quite a change in rates to be of benefit to you to pay those

NO way, don’t pay the exit fees! Just pay your mortgage off by the end of the term.

I didn't know we could fix a few months in advance.
Does anyone with experience think it's best to go for a fixed or variable rate at the mo?

Depends on your circumstances. If you’re not planning to move house for at least five years I would go for a five year fixed rate, there are still some great ones for around the 2% mark. If you’re planning on moving soon then don’t tie yourself down to anything with exit fees.

As the interest rates will only go up one way (ie up), I’d definitely fix. And not pay 4k in charges - that’s over 2% of the outstanding mortgage so more than interest for the entire year!

Agree with everyone else on here - just to add that the mortgage brokers such as ‘London and Country’ are whole of market (so not tied in to any products) and don’t charge you any fees so definitely worth doing - then ask your current provider if they can match/do better.

Thank you all.
How do I know if a broker is completely independent?

They have to tell you whether they are independent/ restricted/ unrestricted etc as part of initial contact.

Unless you are moving no brainer to gi for the longest lowest fix. If you can find one that will let you port it if you do move, all the better.

Ask the broker if they are independent and whole of market. London & County are and have a good reputation.