Early repayment?

[burnyburny]

I took out a small mortgage 2 years ago, on a 5 year fixed term. The amount was £32250 over a 15 year mortgage, there's £28k loan left at present, but will hopefully be approximately 17/18k equity when selling.

I want to move within the next 6-12 months.

Can anyone tell me how much, approximately, I'll need to pay in terms of early repayment?

I know I could possibly look into porting my mortgage, but my current rate isn't great (3.14%) so I'd like to reduce that if possible and not sure exactly how porting would work?

Thanks.

Youd need to see how much % your ERC is on your specific mortgage.

Google your mortgage company and ERC.

You need to find your mortgage documents.
It will probably be on a reducing %.
So
E.g
5% year 1
3% year 2
Etc

There’s an early repayment calculator on moneysavingexpert - check that out. It’s very accurate.

Look at your paperwork as mortgages vary so no one will be able to tell you without looking at your agreement.

Had a look at my paperwork and it will be 3%, so no more than £840, which is less than I estimated.

Thanks.

If your mortgage is so small, a reduction in the % rate will be swallowed up by an ERC / arrangement fees. Make sure you do the sums to check a lower rate is actually going to be cheaper.

@Shelley54

I have no idea what the sums would be? I am hoping to get a considerably bigger mortgage, e.g. 4 x my current one.

Current repayments are £224. I'm prepared to double that and will take the new mortgage over 25 years, but that's all based on a rate lower lower than my current one, as per he calculators I've been looking at.

Does that all sound reasonable?

Ok so it’s not such a big deal if you’re increasing the loan - I’d assumed you weren’t.

£120k over 25yrs at 1.99% is just over £500 a month.

Thanks @Shelley54

I'm not planning on going as high as £120k.

I did say 4 x current, but really it likely won't be more than about £105k.

If you’ve got good loan-to-value, then you’ll get a much better interest rate so that sounds good. Given that the early repayment charge would be £840, that’s not the end of the world to pay.