Two part mortgage renewal HELP

[ER1992]

Hoping someone out there is in the same position as me and can give me some insight on what you are thinking of doing.

Our mortgage renewal is due March 2023... however its not as easy as just a renewal as when we moved 2 years ago our mortgage advisor at the time done our mortgage over 2 parts to save us paying to get out of our current fix at the time.

So part 1 of the mortgage is due march 2023 and part 2 December 2023 and with the current climate this isn't a good position to be in as it means we are unable to shop around and have to stick with our current mortgage provider.

So would you fix the 1st part at the 6% rate they have offered leaving the 2nd oart on the lower rate until December, risk being on a variable until December when we can tie the two in together. Or look at the option of paying early exit on the December so we can shop around now to see if we can get a better deal.

Any advice would be great

We’re in a similar position. 2.5 years left on 5 year fixed (that we ported), 6 months left on 2 year. Plan was to get another 2 year then combine as one product. Because there’s a longer gap that’s probably still what we will do so not sure what I’d do in your position. I’d probably risk the variable.

you could also pay the variable rate for 9 months and then fix in December next year.

you’d need to give more information of the early repayment charges, the variable rate you would pay, and so on

Not sure on what the early repayment charges are just yet as haven't got that far with it. Would you risk the variable from March to December with the current climate? At the moment Natwest are saying the variable will go on to 4.99% (currently on 2.25%) but obviously this could change massively but if we were to fix we'd be on 6.29%

It really depends on your repayment charge etc. sometimes you can also fix 6 months early, so you need to call up tomorrow and find out how early you can fix, the repayment charge and the rate you can fix at. Also, which part of the mortgage is bigger? Some repayment charges are huge right up until the day before expiry whereas some are relatively small.

there is a chance rates might decrease next year but they might not, so it is also about how much you can afford, it may be if you are stretched it is best to fix on a rate now and not have the stress than risk fixing on a even higher rate that you might not be able to afford, unless you have the headroom to pay higher rates or don’t mind if you have to move.

First thing is to find the repayment charge and how early you can fix.