Help! To switch or not to switch! (Mortgage)

[Dogmum20]

We fixed our mortgage at a pretty decent rate last year for 2 years. I know, I know, why didn’t we fix for longer with rates at their lowest for yonks?? Well we want to do some work to the house so figured we would need to remortgage and take equity out in a couple of years. (Turns out we probably can’t afford to do that now but…!)

So my question is WWUD:

1. Pay the exit fees (£3kish) and switch to a longer fix in case interest rates keep rising, or
2. Stay with what we have as we’ve missed any chance of getting a decent rate now and just lump it when it comes to it next year…?

Would love some opinions 😊

Thanks

Stick. Interest rates are Predicted to fall next year.

I’d stick with the rate you’ve got now. If you can increase I’d your mortgage payment to what you would be paying if you switched and maybe pay the £3k you would pay in ERCs off your current mortgage. But you may find that interest rates drop or this becomes our new normal.

We're having a similar predicament. Our fix is up in just over a year and we've been considering switching early and paying the fee.

I think we've decided to leave it, and put the extra we would pay if we re-fixed into the mortgage anyway to bring the capital down. Stressful because I know we'll be absolutely kicking ourselves if the rates are high when our fixed term is up.

Same predicament. Fix at 1.99 % ends in July so need to pay 1.3k in early repayment to jump ship now. However I think when we are able to reserve a rate in the New Year that the interest rates may be especially high, and the offered rate on fixes will be high. So I think I need to jump, or sit tight until August.

I phoning the building society in the morning to ask what fixed rate they'll offer now if I pay ERC. Plan to fix for 5 years and port if necessary.

Where are you reading that? After mini budget yesterday the forecast is for them to go up as high as 5%.

OP, I'd fix for five years. We've just done the same for peace of mind.

What we have read shows rates are going higher. I am no expert but I'd fix for longer I think. Maybe also consider how you would get out if you ended up fixing for 5 and rates lowered - make a back up plan. Could you repay more and then have less outstanding and smaller ERC etc etc

But if they do fall, it will be from a much higher starting position than now. So will likely still be higher than anything you can get now.

Your theory only works if there are no more rises coming, which is vanishingly unlikely.