Stick with my Fixed Rate?????

mazlester

Hello,

My 5year fixed rate mortgage is 5.78% expires on 31 July 2012. Closing balance as of December 07 (can't put my hands on 2008 at the mo!) was £137,155. I currently pay £889 monthly. I have 19 years left on the mortgage.

Does anyone have any advice on whether it would be better to stick with this until the end of it's tem or get out and find something better??? Especially as the interest rate is soooooo low at the moment.

chambta

What's the early repayment charge and your loan to value?

mazlester

The redemption charge is currently £90 and the early repayment charge is £4170

_Andy_

Please see the many, many other threads on the same subject.

Robert_Sterling_3

This is a very hard one to call.
You might well get a lower rate.
You will pay a significantly high early redemption fee.
There may be other charges to pay.
and more importantly we do not know what will happen to the bank rate next month or thereafter.

Having regard to all these factors I won't tell you what I think you should do but what I would do is continue with the current mortgage.

bob2

If you were to remortgage this summer and get a 3 year fix to July 2012 you'd need a deal with repayments that were £118 less per month than your current mortgage to cancel out the £4260 in early redemption fees during that 3 year period. That's before you even consider any fees associated with taking out a new mortgage.

So if you can find a fix which gives you repayments significantly below £771 per month then it might be a good idea to switch.

dimbo61

Even with a deal at 4/4.5% fixed for 3 years you would only save £95/70 a month before the cost of changing lender so better to overpay if allowed.
You must owe less than £124,000 to be paying £889 a month over 19 years at 5.78% I think.