HSBC tracker v Staying on fixed rate

Luv2Budget

Just wanted some advice from you experts on here!

I am currently on a fixed rate of 5.63% (2 years remaining) but I am really tempted by the HSBC tracker deal of base rate plus 1.79%.

To come out of my fixed rate would cost around £2500 - do you think i should do this or stick to my current deal as interest rates could increase - I just keep thinking that I could half my monthly interest payment on the HSBC deal. Mortgage balance is around £70k.

Thanks

joepubli

if the rates stay the same, you would save roughly 3.3% which is 2200 pounds per year. So net of your penalty, you are looking at saving of 2100 over 2 years.

Each 1% increase in interest rate would cost you 700 per year.

In your shoes, I'd stick with the certainty of the fixed rate. The only way is up!

Thrugelmir

Overpay your current mortgage by much as you can afford. Than risk rises in rates over the next 2 years.