Should I switch my mortgage now?

WARDO

I have a bit of a dilemma - I'm on a fixed rate mortgage (4.89) which expires next August 2010. Should I hold off until then or should I switch now, as everyone seems to be indicating that the mortgage rates will be going up soon!
Not sure if its worth redemption fee to switch at this time or not?
Any savvy mortgage gurus out there that can advise?

Greatly Appreciated!

Wardo

beecher

It depends on many things - the size of your mortgage, your Loan to Value, how much your Early Repayment Charge would be. 4.89% is a pretty low rate - fixed rates have already gone up quite a bit so you'd be lucky to get something as low. You also have to factor in the fee which could be upwards of £1000. I can't see the sums working out.

koexelek

beecher wrote: »

It depends on many things - the size of your mortgage, your Loan to Value, how much your Early Repayment Charge would be. 4.89% is a pretty low rate - fixed rates have already gone up quite a bit so you'd be lucky to get something as low. You also have to factor in the fee which could be upwards of £1000. I can't see the sums working out.

Me neither.

4.89% isn't too bad at all. I am sure the ERP and new arrangement fee would negate any potential saving

regsmith

I would stick you have a great rate - especially fixed until 2010.

I don't think you could get a better deal at the moment and if you could you would have to pay a rempetion penalty! (normally 2-5%)