Ditch or keep my fixed rate?

andy208833

Evening,

Am after some feedback on whether to ditch my fixed rate and switch to a new one.

Am currently on a 3 year fixed rate deal at 6.59% on a mortagage of £138k which has a monthly payment of £990 which was considerably more than the previous 3 years. I fixed this last August and then of course the interest rates plunged......

Having seen Martins advice about switching i started to investigate switching my fixed rate. I contacted my mortgage company (woolich) and found that i would have to pay 3% exit fee (£4078) on current balance of £135k plus £995 fee for the new fixed rate and £100 application fee for a total of £5173 to switch to a new fixed rate.

The deal they offered me is 7 year fixed rate 5.47% with a new mortagage payment of £899 saving me £91 a month. Over the 7 years this saves me £7644 then take away the fees and am left with approx plus £2531 difference i.e. i save £2.5k.

My question basically is is it worth switching to a fixed rate for the 7 years?

My thoughts are that:
1. I am 2.5k up
2. Interest rates can only climb over the next few years but this will give me stability.

All feedback gratefully recieved

Thanks in advance

dimbo61

A&L are doing a 5 year fix at 3.99% fee FREE ! LTV max of 65%
Now using "whatsthecost" and taking your mortgage over 22 years at 3.99% your mortgage of £135,000 plus £4000 exit fee = £139,000
means you would pay £791.81 a month and owe £117,151.39 at the end of the 5 years.

dimbo61

Several lenders now doing 3.99% deals
hsbc 60% LTV fee £999
abbey 60% LTV fee £999
Post office 4.15% 5 year fix LTV 75% !!! fee £799
Last one might be good if you dont have lots of equity in your home.
GOOD LUCK

andy208833

Think i might go for it. Don't want to pay for a new survey and would like to keep this mortgage going rather than start again.