Remortgage now?

[PickledWilly]

We have two mortgages due to moving house midway through a 5 year fix and borrowing extra on the advice of our broker a few years ago. The large mortgage's fixed rate ends in October this year, with the smaller mortgage fixed rate ending in Feb next year. I am getting increasingly more nervous about waiting until the fixed rate ends to remortgage both into one mortgage due to interest rate rises, and am considering taking the hit and paying the early exit fees to lock in for a 5 year fix whilst rates are low. HOWEVER, I'm starting a new job at the end of April, £3k salary increase. Whilst it's a new role in a new location, technically the employer will not change as my employer is the Local Authority. Can I remortgage now? Or better to wait until I've been in the new role for a couple of months (and risk rates rising)?

Is it possible to remortgage the 2 separately again? Could you pay off the smaller one?

I'm guessing that in either case you will have to wait at least another 2 months to do anything since the end of your first fix is more than 6 months away. I didn't use a broker but found most banks only let you remortgage 3 months from fix end. So we lost out on all the good rates below 1%

Most offers only last 6 months so you wouldn't be wanting to REMO sooner than April anyway. Speak to your broker and run through your options with them?

Thanks for replying.

No we can't pay the smaller one. One mortgage is £200k and the other is £100k.

When I said I'm thinking of remortgaging now, I meant I'm thinking of paying the early exit fees now in order to remortgage at a low rate for 5+ years.

What do people think?

How much would be the early repayment charges? Usually it's % of what you owe. It would have been over £20k in our case and was not worth it.

The BoE rates will probably not shoot up much over 1% by the end of the year so I'd guess mortgage rates around 2% for 60 LTV 5 year fix. They're already around 1.7% now so I would be surprised if that was worth the early repayment charges. But this is all guesswork based on reading all the mortgage and rate info online. The next interest rate review is mid March.

I would have a chat to a mortgage adviser and see when it's the earliest possible date to remortgage. And probably remortgage separately if I could.

I did this last month, but only had six months left on the fix. You need to do the maths to work out the likely amount you would save if you fixed now v once the current fix expires, assuming a certain rate increase. (I did this at the time assuming 0.5% increase on rates between end January and the end of July). Compare the saving to the early exit fee and you will know what to do.

For me the early exit fee was £2k and the savings of getting a rate at 0.5% lower for 5 years were over £5k, so we decided to switch early. Rates have already gone up 0.3% at my bank since then, so it was the right decision.

If you remortgage with your current bank your salary change is probably irrelevant. Or are you looking to move?