Early Repayment HELP??

AKSK

Hello,
I'm new to MSE and this is my first post, so apologies if this has been asked before.
As I'm sure many others have, we fixed our mortgage at around 6% about 14 months ago as we wanted stability in our repayments. and evrr since then the rates dropped. I cringe when I look at todays rates and wondered if there is anything I can do?

We are tied in until November this year, but I am worried that the rates will start creeping up by then?

Is there a way I can pay a fee to my mortgage provider (Abbey) for an early repayment, and then take out a new mortgage on the much lower interest rates we are seeing now?

I think the money we would save on the monthly repayment would quickly pay off the early repayment/penalty fee.

I'm sorry if this post is badly written and a mess, but if anyone can decipher what it is I am trying to put across, then any help or advice would be very greatly apprecited.

Thank You in advance.

herbiesjp

Ok:

1) What is the exact rate you are paying?
2) What is the current mortgage balance?
3) What is the property value?
4) What is the penalty fee from Abbey?


The answers to the above will go a little way to seeing if this is worthwhile for you.

Don't forget that you may well see a low rate, but will you be eligible for it?

You may well be eligible for it, but will you recoup the penalty fee?

So you just about recoup the penalty fee, but then you need to take into account the exit fee from Abbey and the arrangement fee for the new mortgage - is it still working out better for you to leave Abbey?

dunstonh

As I'm sure many others have, we fixed our mortgage at around 6% about 14 months ago as we wanted stability in our repayments. and evrr since then the rates dropped. I cringe when I look at todays rates and wondered if there is anything I can do?

You bought the mortgage to give you certainty of repayment. If you come out of the deal now and go into a tracker or similar you will lose that certainty. Yes you may save a little in the short term but what about in 12 months time when rates start to increase again? They are not going to stay this low any longer than is necessary.

The average mortgage rate is around 7-7.5%. Any fixed rate below that figure is better than average. Yours is not that much lower so there may be scope. However, you could be looking at short term gain and long term pain.