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Switch from fixed rate???? Help!!
Pixie983
Posts: 76 Forumite
We have a mortgage of 147,000 with Northern Rock on a fixed rate of 6.9% until August 2010. It costs us around £950 a month and I'm wondering whether with all the interest rate cuts recently it would be a good idea to pay the early repayment charge & switch the mortgage to lower the monthly payments? I think the fee is around £4,000? Any advice appreciated! 
0
Comments
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You need to do your sums in terms of what it costs you to repay your mortgage including the ERC and work out what you'd be paying if you moved to another fixed rate product with another provider.
You'll also have to consider what LTV you have in your property, as this will determine what kind of deal is currently available to you. What's happened to property prices in your area?0 -
I'd stick it out - given that your mortgage balance would increase straight away by £4000 (plus any fees for the new mortgage) I can't see it being worth it.0
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