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Should we change

I have a fixed rate mortgage at 4.59% until may 08. I'm worried about the interest rate rising and wonder if I should hold onto this until next year or see whats available now? I've been offered 2 years at 5.25% Any thoughts welcome.

Comments

  • UK007BullDog
    UK007BullDog Posts: 2,607 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    What are your early repayment charges?
    Exit fees costs etc. if you change lender.

    The offer is from the same lender?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    It would seem strange to pay a penalty, only to go on to a higher interest rate?

    Unless you were looking at a longer term fixed rate, I can't see how you would be better off.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • rats
    rats Posts: 9 Forumite
    Thanks for your replies. The penalty is £2000. I wasnt sure of this until today(these things arnt easy to read.) I was considering changing because the original advisor said we should change it every coup[le of years and we are on our 4th year.
    The offer is from a different lender. I was thinking that if the interest rates continue to rise, by next may there may not be a decent longer term fixed rate.
    I remember when the interest rates went up to double figures.
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