Change fixed tarriff

rocketmailman

I am currently on a 12month fixed tariff until 11 Dec 2024. If I change tariff more than 49 days before the end date there is a £75 exit fee. Am I best to pay the exit fee and sign up to a new tariff now or wait until mid October to change without paying but at risk of higher rates?

BarelySentientAI

Do you think the possibly worse rates will cost you more or less than £75?

EssexHebridean

Yes - this is one you definitely need to do the maths on. It seems unlikely that it would be worth it - not least as I suspect any fix you went onto 10 months ago has higher unit rates than the current SVR ones, and possibly even than the current SVR +10%, which is roughly where I believe we expect to see the new rates from October. 

spot1034

You should also take into account that wholesale rates have dropped quite significantly in the past week, which means the rapid rise in the price of fixes since early August is not going to continue in the short term. You might actually see some cheaper deals as a result of this retracement. It might not last of-course - by next week we could be back up to where we were, but the market doesn't seem to know where to go at present, so don't get carried away with the idea that you need to jump on the train now before it gathers speed as it seems to be slowing down at present.