Product Transfer/Switch 8 November 2022 at 3:52PM in Mortgages & endowments 2 replies 142 views

Stella76

Hi
I have been offered a product switch on Kensington's system.  My fixed rate does not end until 31/03/23 - the rate is quite high and I am exploring other options.   If fixed rates do come down a bit do these switch options also change? Probably a stupid question but there's so much to consider at the mo!

GiantTCR

Stella76 said:

Hi
I have been offered a product switch on Kensington's system.  My fixed rate does not end until 31/03/23 - the rate is quite high and I am exploring other options.   If fixed rates do come down a bit do these switch options also change? Probably a stupid question but there's so much to consider at the mo!

- In theory YES, if the BoE base rate comes down, mortgage rates should/may come down as well.
- In practice, with your current deal ending on 31/03/2023 it may not make a huge difference. Even if the base rate miraculously comes down, it won't come down by much and therefore the change in the mortgage rates offered will be minimal. 

K_S

Stella76 said:

Hi
I have been offered a product switch on Kensington's system.  My fixed rate does not end until 31/03/23 - the rate is quite high and I am exploring other options.   If fixed rates do come down a bit do these switch options also change? Probably a stupid question but there's so much to consider at the mo!

@stella76 If fixed rates come down across the market then yes they do usually reflect in product-switch (PT) rates as well.

Kensington just updated their new-business (new customers) rates today so it might be worth re-checking whether there's any change in the PT rate they're offering.

Given that you're less than 5 months away from the end of your fix, do explore other non-Kensington options if at all available to you. Good luck!