Is it worth paying the penalty?

KazBaz_3

I remortgaged in July 08 on a fixed rate of 6.19% (ouch) for 2 years. I'm regretting not going for the tracker mortgage. Is it worth my while changing product and paying the £4919 penalty fee?

Ta

Robert_Sterling_3

I very much dount that it is.

Foyzone

Ive been looking at the same but the savings are minimal

koexelek

Foyzone wrote: »

Ive been looking at the same but the savings are minimal

and if the rates go up again over the next two years, there will probably not be a saving at all

getmore4less

KazBaz wrote: »

I remortgaged in July 08 on a fixed rate of 6.19% (ouch) for 2 years. I'm regretting not going for the tracker mortgage. Is it worth my while changing product and paying the £4919 penalty fee?

Ta

To work this out.

Work out what your outstanding debt will be at the end of the fix.
Add the fee to your cuurent outstanding loan and see what the new payment will be to get the loan down to the same level as before.

if this is smaller than your current payment you save if not you don't.

koexelek

getmore4less wrote: »

To work this out.

Work out what your outstanding debt will be at the end of the fix.
Add the fee to your cuurent outstanding loan and see what the new payment will be to get the loan down to the same level as before.

if this is smaller than your current payment you save if not you don't.

... assuming the interest rates stay exactly the same as they are between now and the end of the original fixed rate

Wutang_2

KazBaz wrote: »

I remortgaged in July 08 on a fixed rate of 6.19% (ouch) for 2 years.

Ta

"ouch" as in "ouch - I couldn't afford it then and still cannot afford it now"??