Mortgage dilemma!

[LoobyLou2709]

I'm getting so stressed at the moment as I'm completely clueless when it comes to mortgages etc! . Quick overview..

We have just completed a self build with a self build mortgage, we are paying interest only at 5.15% and was tied in for 2 yrs (until Dec 2020) £200k mortgage, we have finished the build earlier than expected so want to change our mortgage to repayment ASAP on a lower rate.

Our options are to stay with current lender, change to repayment fixed for 2 yrs, on 2.99%. No fees to pay. £827 monthly payments.

Or option 2 change to another lender fixed for 5 years at 1.71% but have to pay a £4K early repayment fee to the lender we are with now, also have another 1k to pay in fees which could be added to the mortgage, but our monthly payment would be £714!

I have it in my head I'd like the lower interest as payments would be less a month, and I like the security of it being fixed for 5 yrs! we'd try and overpay when we could, but things would be stretched for the next year,

Any mortgage experts out there that could stop by brain from frazzling??!

Stay with lender and change to the 2.99% offer. Then at the end of the 2.99% deal change without exit fee and find a fee free mortgage. The difference in two years payments at the higher amount is still less than the exit fees and charges.

Agree with what flirty girl said.

Thank you, I thought that would be the case, my brain just wasn't working it out 😆

You would be saving £113 a month, so £1808 over the 16 months left on the current deal. And you'd be paying £5000 for doing it. Definitely stay with your current lender!

I think I'm just worried the interest rates will shoot up in a couple of years and I won't get the 1.71% interest rate fixed for 5 years?, but that's the gamble I suppose, the mortgage has been the most stressful thing of the whole build!