Shall I move Mortgage or not?

Iqbal28

I have just over 3 years left on my mortgage and about 27,000. However I am in a fixed rate tied in until 2011.The rate is high compare to what is on offer in some banks now. Should I risk the £750+ fine and move it to a better deal? I also want to pay it off as quickly as possible and have been paying more than what I should be. It is a repayment. Also do these mortgages linked to savings accounts really work and help to clear mortgage quicker????

Thanks

dimbo61

The big question is wether its worth going to all the trouble of moving mortgage with only £27k left and ERC,s to pay to move !
I would carry on the overpayments and stop worrying about the BOE rate or any new mortgage offers ( most carry big fees to get a good rate )
Save into cash ISA,s or regular savers.
Yes offset mortgages work for some people with the ability to save into the saving accounts ( or a nice mum and dad to help out !!! )

StuartGMC

Dimbo, offsets also work with the current a/c linked too, particularly like this case (similar to ours) where the income per month is a sizeable proportion of the outstanding capital.

That said, I concur that it is probably borderline to be worthwhile incurring a range of costs by moving (you may be below the minimum loan level anyway, so would need to take out more, which is not an issue on offsets), unlike our change in 2006 at £32k when there were virtually no fees etc.

Overpay now unless you also have ERC to consider in which case, just pay down as scheduled and as Dimbo advises, save the rest.