Martins Advice re switching?

jolo_2

Hi, I listened to martin a while back on the radio and he said that unless your fixed rate was below??% you would probably pay more in early redemtion fees than you would save by swapping, does anyone know what that figure was - even roughly please?

dunstonh

I dont know how you could come up with a rule of thumb figure as every deal is different. One deal may cost you £5000 to come out whilst another may be £500. In which case the "target" rate would be different.

Out of interest, was there any mention of the risks involved, such as interest rates rising in the future?

koexelek

dunstonh wrote: »

I dont know how you could come up with a rule of thumb figure as every deal is different. One deal may cost you £5000 to come out whilst another may be £500. In which case the "target" rate would be different.

Out of interest, was there any mention of the risks involved, such as interest rates rising in the future?

The so called experts in the media say buy out of your current fixed and go onto a lower fixed over the same period of time, then you know exactly what you wil save :rolleyes:

Of course, in reality, it does not work like that. The only way you will be able to even think about paying a penalty is if you switch to a tracker ( as the fixed rates are priced too high to make the saving you need).
Then , of course, you run the risk of the tracker going up instead, and ending up in an even worse position that you were in.