Incurring large Early Repayment Charge

[Justcallmebabs]

I am getting concerned about the interest rates. Currently on a fixed rate until Sept 2024 and god knows what they will be then but general consensus is that the good days are over and we might be looking at 5% average. This will increase our monthly payments by £1000 which is scary. I am considering fixing for 10 years now at about 2.6% but this will mean we pay a significant ERC - about £15k I reckon.

does it seem mad to do this?? Just looking for certainty whilst we have small children

I've just fixed for 10 years on a 2.4%. My previous was 1.89% and wasn't due to end until May 2023. I paid the early redemption fee to do this and think it will be much better in the long run. I'm a single income household so a rise above 4% would be really difficult to manage.

I don't consider 2.4% to be a bad deal either and I'm happy with that. I don't think they will reach the 15% interest rates of years gone by and I also don't think they will ever be as low as they have been again.

We spoke with Lloyds yesterday and have fixed a product at 2.7% pending usual checks. Will have until end of Nov to take them up on it.