Is it worth to pay early repayment charge to get rid of fixed rate mortgage? | Money | guardian.co.uk

Is it worth to pay early repayment charge to get rid of fixed rate mortgage? | Money | guardian.co.uk

Q I currently live in a flat worth around £135,000. It was shared ownership but I bought the remaining 50% with a second mortgage and put down a 30% deposit (from an inheritance). My previous mortgage expired a month before the crash so now I am stuck with two mortgages on fixed rates of 5.59% and 5.69% amounting to £706 payment a month.

I have been trying to reduce this quite absurd rate. My bank offered me an offset loyalty mortgage, as I have had a current account for a number of years and modest savings. My concern is that I would need to cover my current mortgage early repayment charge of £3,082. I could cover this charge with part of my savings and put my last year's ISA into the offset and I would recoup the £3,082 within two years but that would be, again, two years. Would this actually be worth it?

A ...