Should I pay ERC and fix for 5 years?

[Stalemate1134]

I have a 2yr fixed deal, which will end in Nov 2023. Last year, I got a mortgage offer from another lender when the rates started going up, and the 06-month validity of the offer is coming to an end at the end of this month.

The current 2-year fixed rate is 3.2% (95% LTV so it's high) with a ERC of roughly 4.5k. The new 5-year fix is at 3.89%. Monthly payments will go up by £60 which is affordable.

I know that no one has a crystal bowl but still thought I'll try asking for some informed opinions. Currently, I'm getting mixed advice - friends and family are recommending we go for it but one mortgage broker who I have used before is suggesting that I hold my horses till Nov. Ultimately, the risk is mine and my tolerance for risk is relatively low as I have a toddler and we are planning for another one so looking for more advice.

Shall I pay the hefty ERC and fix it for 5 years?

The mortgage is for 427k for 35 years if it helps.

Thanks.

I was going to say hold your horses but that's a huge mortgage with a very high LTV

Things are so uncertain right now that I'd be tempted to pay the ERC as it's a small percentage of your loan.

This is a pretty cool calculator from the Money To The Masses website where you plug in your ERC, current and potential interest rate etc and it estimates if it's worth it.

app.nous.co/refix

I'm sure many people have crystal bowls! Especially anyone that got married in the 80's. 😂😂

what is the potential new lender currently offering for a 5 year fix? (Not your offer, their current offer)

ONLY MY THOUGHTS

I fixed at 2.48% for 5 years last year, but I wouldn't be fixing at your rate for 5 years now. All the talk I've heard is for rates to be decreasing.

Have you checked to see what kind of deal you can secure now?
Its not just an additional £60 a month is it? It's also an extra £75 a month on top pf the £60,for 5 years as you have had to pay the ERC

I don’t think the £60 a month extra can be correct. It’s 0.69% on £427k.