Mortgage Change? Would i get charged?

anditsinthere

I have currently a Fixed Rate mortgage with the Alliance and Leicester at 5.34% which i took out in April 2006 and is due to run until 2011, what sort of charges would i expect to pay if i changed my mortgage now? Could i get a Tracker at a better rate or would i get penalised?

Many Thanks

_Andy_

The early repayment charges would have been detailed on your KFI and mortgage offer. You can contact the lender for an exact figure based on your current balance.
Are you sure you'd want to significantly increase the balance of your mortgage and throw away the security and certainty you currently have for a short period of lower payments?

anditsinthere

What Pro's and Con's would i be looking at? I have a £103k Mortgage could you shed more light on this as i'm a little unaware of Mortgage 'talk'?
Thanks.

blueberrypie

Pros:
You might get a tracker now that would reduce your current monthly payment.

Cons:
You'd have to pay any Early Repayment Charge on your current mortgage.
You'd have to pay the fee for any new product, as well as any related solicitor's fees, possibly valuation fees etc.
You'd probably be paying less now, while interest rates are very low, but when they start to climb, your monthly payments would increase - possibly quite substantially above what you're paying now.