fixed rate runs out in May 2007

[Deleted User]

My current fixed rate 2yr runs out in may 2007. I know there is talk about the fixed rates rising shortly, so would i be best to get out of mine now to start another or wait until may? currently with nationwide 5.19% 2yr fix which has repayment penalities? help!

herbiesjp

You would not come out of your fixed rate early, as you would have the penalties to pay.

What you could do shortly, is apply for a re-mortgage with a different lender, and opt for a deal with no fees or one where the fees can be added to the mortgage.

A lot of lenders will issue a mortgage offer letter that will be valid for 6 months, and some will issue it for 3 months (although these can normally be extended by another 3 months)

This way yu have got yourself a deal lined up, and nearer the time you will be able to see what your current lender will offer you, and also what the deals at that point in time are.

If they are lower, you can then proceed with a new deal.

If your current lender offer you a good deal, you may well opt to stay put.

HTH