4.29% 5 year fixed Vs 2% + base tracker

[Casa1862]

I'm looking to change mortgage products and seen some fairly good deals around. I'll have to pay a exit fee of £3200 to get out of my current 5 year fix (5.49%)but long term think it's worth it. I've got LTV of 42% and the loan is £161k so should get fairly good deal, however salary has gone down to £40k.

On interest only monthly deals work out as follows:

4.29% Fixed 5yr £695 fee £575.00
2.5% Tracker lifetime £335.00

Thanks in advance

[scotal]

There is better than that out there in 5 year fixes.

How long do you have left on your current fix?

[Casa1862]

scotal said:

There is better than that out there in 5 year fixes.

How long do you have left on your current fix?

All the better ones are being pulled or or I can't borrow the whole £161k, I'm still looking around at the moment.

Current fix runs out Nov 2012 so about 20 months.If I wait until Nov 2011 the exit fee drops to £1600(1%). I'm worried that if I wait too long decent rates will get pulled and I'll come end up in 20 months time facing higher rates. I'm not too certain my salary won't go down which will make it even more difficult.

[scotal]

YHM

[Backtobasics]

scotal yhm

[rog007]

That's a large exit fee. It would be worth sitting down and doing the maths comparison, and not just relying on 'gut instinct'. With a large exit fee, plus fees to set up the new deal, you may not be any better off than waiting for the current term to conclude naturally. Of course, as you are implying, interest rates 'could' rise high enough to make it worthwhile chopping now. Unfortunately, no one, and I mean no one, has a crystal ball and so only 'you' can make the call after researching the market and weighing up your own appetite for risk against your own personal circumstances. Good luck!