Remortgage now or not? Advice needed please!

Hello, if there are any mortgage experts out there, we’d really appreciate your opinion!!
We have been in touch with two mortgage brokers who have advised us completely differently. Our situation is this:
We moved out of our home in Sept 2021 and have moved - so we’re renting where we live now, and we’re renting our flat out. We have permission to rent from our current mortgage provider, until the mortgage term ends on 30th Sept 2023. We are currently on 3.84%, fixed rate residential mortgage. One mortgage broker has advised us to get a new mortgage asap before the rates go up even more, which would mean an early redemption fee of £4,580. We would need to get a buy to let mortgage next as we’re still going to be renting the flat out. We have a mortgage of £229,000 and the flat was valued at £340,000 a couple of years ago. This mortgage broker has said we may be forced to put £35,000 into the flat if the rates go up a lot - but I’m not 100% sure why. The rent we get covers the monthly mortgage amount with a bit to spare. Our monthly mortgage is £1,600.
Another mortgage broker said it wasn’t worth ending the mortgage early due to the £4,580 early redemption fee.
We’re really confused and would appreciate any sort of advice whatsoever!!!

Ok. I think £35K is due to LTV ( loan to value) to get a better deal. 1st broker must have a crystal ball to make you pay redemption fee! I don’t think he can get a better deal than 3.84% so your mortgage will increase and you will pay redemption on top of it. Plus mortgage fee! If not zero fee product.That is a ridiculous suggestion based on my personal view. I have a tracker on a consent at 4.5% current rate and I am sitting on it and not changing. To be honest 1st broker probably doesn’t know what he/she is doing and ended up being a mortgage broker only because he/she knows how to turn a computer on.
If I am in your position, I would stay put.

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First broker needs to find a new job!

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Even if you are not charged a referral fee this broker will get one from the mortgage company if he can persuade you to cough up a redemption fee and take out a more expensive mortgage.

I’m not a broker but I’d leave it as it is and see what’s happening nearer the time

The first mortgage broker is just trying to sell you a mortgage, ignore him.

I would have thought you wouldn’t want to be tied in under a new mortgage at this stage. It generally isn’t advisable to rent your property out and then rent your home on a long term basis as you will pay tax on the rent you receive which can’t be offset against rent you pay, and if you are higher rate tax payer (or rent makes you one) you only get a basic rate credit so as you will have a high interest bill renting for long term isn’t likely to be a good option.

Do you plan to move back to the flat?

Mortgage rates are predicted to go back down by the time your fixed term expires. Youre not on a low rate anyway so I would anticipate something similar would be available by then. I def wouldnt do anything now with such a large early repayment charge.


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