I'm toying with the idea of buying out of my current mortgage term with approx 13 months to go. The buy out fee is around £7000 but my lender has far better products avaivable than what I'm on currently so I've estimated that after 5 years, I'd be approx £17,000 better off by changing products. Clearly I'd have to factor in the repayment fee but even with that, I'd be saving in the region of £10,000.
I've always waited until the end of the mortgage term before changing before so not sure if the early repayment fee needs to be paid upfront or whether it's added to the mortgage?
My advisor is on holiday so I'll ask him when he's back but I just wanted to get some opinions as I'm keen to take advantage of the 5/10 year plans being offered.