Advice needed - end of introductory rate offers

Babylonian_2

Hi - I'm looking for some feedback on some options I have been offered by my current lender. Their SVR is 6.54%

My 2.21% discount will expire on 1 December on a mortgage of £113755 and I pay an extra £50 a month as an overpayment. I got this discount via a broker.

I've now been contacted by the lender ahead of the introductory rate expiring with the following options:
1.55% discount for 3 years - £799.13
1.65% discount for 2 years - £793.00

5.33% fix until 28.02.10 (£820.15) - early repayment charges yr1 - 5%, yr2 4%, yr3 3%, yr4 2%, then 1% until end of deal.

5.33% fix until 29.02.08 (£820.15) - early repayment charges yr1 - 3%, yr2 2%, then 1% until end of deal.

We can't say for sure we will still be in the same house in 5 years time.

Until I got the letter, I was going to shop around (for the first time really) - does anyone have any views on these offers?


Thanks!

Hobo_2

Hi, What is the cost to change to these other deals with your existing lender?

Babylonian_2

Hi - there are no fees from my current lender to change to these rates...

Woby_Tide

Even with exit fees and potential entry fees to a new lender over 3/5 years on a fix the chances are it could well be cheaper, with rates around 4.6% and 4.7% for 3/5yrs that gives monthly rates a good .7% lower than what your current lender is offering. Even if you potentially may move most lenders offer portable deals you can take with you when you move with no penalty. Definitely shop around though, rates don't look very special, charges or not