The question remains then.  Is it worth paying redemption penalties with your existing lender and remortgaging to a new lender?  In some circumstances, yes, it is.

Here’s an example of a recent remortgage that we arranged.  The client had a 5 year fixed rate at 6.19% with 44 months to go until end of redemption penalty.  The redemption penalty was £2600.  The new rate we found was 4.69% which represented a £112 per month saving.  Even when taking into account paying the redemption penalty  and the new mortgage arrangment fee, the saving over the 44 months  was £1329 which equates to £30 per month.  £30 per month is better off in your pocket than a lender’s so it is definitely worth remortgaging and paying that redemption penalty.  Of course, this depends entirely on your circumstances but it is worth you having a look to see if you can save money during this recession.  If you would like further advice please use the enquiry form or call us on 0870 080 2343.