Fixed Mortgage - Is It Worth Exiting

El_Monkey

I have a fixed rate of 5.19% which runs until April 2011. I have exit fees until then of several thousand pounds this year and £900 next year.

My mortgage is due to be repaid in 2016 - is it worth getting out of this deal and re-mortgaging. My current fixed payments are £762 per month reverting to standard variable rate from April 2011. The loan left is approx £72,000.

Can anyone help me.

_Andy_

Hi

Please have a look through the mortgage forum, this subject has been discussed many many times recently.

dimbo61

If you are not happy with the rate you are paying then overpay each month and wait until your existing deal ends.
Paying thousands in exit fees is not worth it.

Spangled

The problem is that even if you were prepared to pay the thousands of pounds in ERCs, it would be near-impossible to secure a low enough fixed rate to make the switch financially doable. The best fixes right now are around 4.5%, which is only a 0.69% saving — and those fixes often come with high arrangement fees themselves, further negating the benefits of switching. You *could* switch to a tracker — First Direct do a BOE +1.89% tracker, giving a current pay rate of 3.39% — but there's no guarantee the BOE rate will stay low. 5.19% is a decent rate really. You can play around with rates at: http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml