Remortgage help!

[bananainpjs]

Hello,

We are due a remortgage on a part of our mortgage.

Mortgage
Two sub accounts (as borrowed more to buy current house)
Major one ends Feb 2023 (as that was fixed for 5 years) so don’t know what the interest rate will be next year.
Second smaller sub account ends this month (as fixed for 2 years) They have given me an interest rate of 2.19% (it was 1.69%) so monthly payment has gone up by £20.
Come next year, could get a worst interest rate on the major part of mortgage, not sure.

Or pay an early repayment charge of £3K to come out

Take the whole mortgage (both accounts) to a new lender which will give an interest rate of 1.7% for the whole mortgage for fixed term of 5 years.

What is the best option?

Speak to your bank or a financial adviser. Only they can tell you which is best for you.

We are in a similar situation. Planning to pay ERC and move to a single lower rate which we can fix for 5 years. Rates have already gone up in the last 2 months so in your shoes I'd hurry. I got our offer last year so we can switch whenever we are ready.

I did some speciation if possible rates at the end of our fix to work our that it makes sense to break now. You can do the same but I suspect £3k is worth paying for securing a good rate for 5 years.

Also you can hold a mortgage offer for 6 months, so if you are entering the last 6 months of you fix soon then might be worth waiting until that point and then getting a new offer ASAP.