Another Fixed rate question...

madeinleeds

Hi All

I currently have 1 year left of a fixed rate of 5.19%. It will cost me 2k to come out and move, along with legal fees etc.

Is it worth doing - to try fix for say 5 years? will I get my money back?

Its a 102k mortgate over 30 years.

Any help will be welcomed.

Thanks

Robert_Sterling_3

The 2K fee is approx 2% of the outstanding balance.
So unless you can do a deal that costs you nothing and get a rate close to 3% then i do not think it is a goer.
However the bank rate is at an all time low. So it might be that you could get a low fixed rate for a five year period which would be to your advantage if rates move up as they well might in the next five years. Nobody can be certain of future rates. It is your call.

_Andy_

There are several threads on this exact subject.

beecher

5.19% is low and the 5 year fixes available now aren't that much longer. Can't see you getting your money back, especially once you factor in the arrangement fees. Find a deal, work out your savings and do the sums to find out for sure.

catriona69

I don't understand why you want to get out of your fixed deal a year early.

dimbo61

If you have £2000 spare then overpay on your mortgage each month until the fixed rate ends.