Mortgages - is it better to switch deals now to get a better interest rate?

[firststeps]

Our 5 year fixed period finishes in November, but I was wondering if it would be better to switch deals now to get a better interest rate? We would have to pay £1500 to change before the fixed period comes to an end but would this balance out with the money we would save over the next fixed period???

it depends on what fixed rate you can get. lots of pretty good rates are being advertised but you may not be able to access them (lenders are pretty much finding any excuse not to lend. also dont forget moving to another lender will have additional costs. probably a good idea to get a broker to work out for you whether it works out.

Also bear in mind there are some hellish arrangement fees at the moment, often as percentage of amount you are borrowing, which will really rack up the costs.

As princess says - try a financial broker for advice - may be worth doing. Also trackers are now low - but for how long?? Lots will depend on your loan to value ratio - how much you areborrowing vs how much your asset is worth - assume that prices are falling so LTV rates are going the wrong way - this makes the 'risk' higher. Also have you a good credit rating etc. We have about 3 years left of a Fixed term - to the end of our mortgage - been paying in extra each month so hopefully may be sooner. We could get a lower rate but the exit fees and costs for new borrowing don't stack up for us.

It's a gamble but my guess is inflation and high rates are round the corner, i'd stick with what you have.

I think you'll be OK until November. Might even possibly be better deals by then if lending starts to relax a little. You won't be able to get a tracker anywhere near the base rate at the moment. If you could overpay or save the arrangement fee til November you could pay down your debt. Then fix when your current deal ends.

My guess would be against inflation until next year at the earliest (but eventually it will be carnage). Place your bets!

Thanks everyone - think we will just sit tight until November