Leaving fixed term mortgage early

[Chefwifelife]

My husband and I are 2 years in to our 5 year fixed term mortgage with HSBC. Our current rate is 2.14% over 30 years and the last 3 months we have overpaid so have an outstanding balance of £233,691. We pay £925 per month.

There are currently rates as low as 1.44 for a 5 year fixed.

Has anyone left their fixed rate (particularly with Hsbc) and paid a fee for the better rate in the long run?

Any advice or info would be really appreciated.

Really depends on weather you have any early repayment charges to leave the current fixed rate.

You then need to work out how much you would save on the new fixed rate then compare it to the fee for the early repayment charge.

For ease of numbers the early repayment charge is £5,000 and on the new fixed rate I'm only saving £100 per month over five years x60 months that's only £600 so not worth it.

You can find details of an early repayment fee on mortgage statement or speaking to your lender. Martin Lewis money saving expert has a whole
Section about it on his website

www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

Plugging the details into here your monthly repayments come out to £800 on the 1.44 but that's assuming you would get that. Are you working through a broker or just looking online? How much is your loan to value (how much is the property worth in relation to how much you owe on the mortgage)

Thanks @lpchill I found that rate through money saving expert too. I thinks it's 78% as the house is now worth about £300,000

That's a sham your not at 75% as that's where the best deals are but still a good loan to value. Do you have any early repayment charges?

@lpchill we definitely have a repayment charge but waiting for the mortgage part of Hsbc to be open. Our home was £290,000 and we put down a £45,000 deposit.

You'd need to calculate how much the interest rate would save you for the next 3 years and compare that to your early exit fee. The exit fee is quite likely to be quite high at only 2 years into the 5 year fix, if it were my bank it would be 3% of the mortgage. Don't forget there may be a product fee on the best rates too.

Thanks @orangeteal I'd forgotten about that

Would you get the 1.44 on a 78% ltv? I'm currently remortgaging to that rate but it's 60% ltv max. The other lender that offered it went to 1.78% from 1.44 when full details were entered.

I think one other lender I saw had it at that rate in comparison website but not sure on details.