Ditch my fix? What to do ??

BostonLicker

Hi Chaps, been thinking this over for a few days, but i always value other people's opinions!:)

In a nutshell, im thinking about ditching my fixed mortgage with the Woolwich and moving to another bank with a lower fixed % rate, with the overall aim of overpaying on the mortgage thus reducing the overall term.

I'm not concerned with the potential exit fees i will have to pay to move.

The main problem i have is do i switch to a lower rate now (3.29%) or do i wait out the current deal which still has the best part of four years to run at 5.45%. At first glance this seems a no brainer to move right? Heres the twist...

At the end of my current deal which ends in around 4 years at 5.45%, the mortgage reverts to a variable rate which is 1.99% above BBBR, which would make it 2.49% in todays money.

I know its impossible to predict base rates for 4 years time, but what would you do?

Do i see out my presented fixed deal with the hope the base rate is still low in 4 years time OR do i ditch the fix and go on a cheaper deal now?????

All comments are much appreciated.

Regards Bob

latecomer

Have you put your details in here:

http://www.moneysavingexpert.com/mortgages/fixed-discount-mortgage-guide#calc

Dont forget to take account of legal and valuation fees if required,

Most people expect the base rate to rise at some point in the relatively near future but nobody knows what will happen. it could go to 10% or stay at ~1%.