Cheshire Mortgage Broker» remortgage to fixed rate http://www.cheshire-mortgage-broker.co.uk For Local, Free, Impartial Advice Tue, 09 Mar 2010 19:49:08 +0000 en hourly 1 http://wordpress.org/?v=3.3 Should I Switch My Fixed Rate Mortgage Now? http://www.cheshire-mortgage-broker.co.uk/should-i-switch-my-fixed-rate-mortgage-now http://www.cheshire-mortgage-broker.co.uk/should-i-switch-my-fixed-rate-mortgage-now#comments Wed, 11 Mar 2009 17:19:39 +0000 admin http://www.cheshire-mortgage-broker.co.uk/?p=165 A few years ago it was rare to find a fixed rate worth switching to even if it meant paying redemption penalties on your original rate.  Times have changed recently and fixed rates have dropped very quickly indeed.  18 months ago a five year fixed rate of 6% was quite a good rate.  Now, however [...]]]> A few years ago it was rare to find a fixed rate worth switching to even if it meant paying redemption penalties on your original rate.  Times have changed recently and fixed rates have dropped very quickly indeed.  18 months ago a five year fixed rate of 6% was quite a good rate.  Now, however a five year fixed rate can be as low as 4.44%.

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.

]]> http://www.cheshire-mortgage-broker.co.uk/should-i-switch-my-fixed-rate-mortgage-now/feed 0 Are Fixed Rates A Good Option Now? http://www.cheshire-mortgage-broker.co.uk/fixed-rates-good-option-now http://www.cheshire-mortgage-broker.co.uk/fixed-rates-good-option-now#comments Wed, 11 Feb 2009 16:19:23 +0000 admin http://www.cheshire-mortgage-broker.co.uk/?p=1 There are plenty of people who are very happy with their low standard variable rate mortgages right now but these rates won’t remain low forever.  As I write this the Bank Of England is currently at 1%.  The rate could go down further but obviously not by much. 

So the question remains, fix now or later?  [...]]]> There are plenty of people who are very happy with their low standard variable rate mortgages right now but these rates won’t remain low forever.  As I write this the Bank Of England is currently at 1%.  The rate could go down further but obviously not by much. 

So the question remains, fix now or later?  Who knows on this one.  Some lenders have been putting fixed rates up recently even though base rates are going down.  Does this mean that any new fixes coming on to the market will be higher?

No one has a crystal ball right now so it is difficult to tell.  Personal finances come down to personal choice.  If you are worried about rates going up you might fix now otherwise stay on the variable rate and take your chances in the near future.  One thing is for certain, standard variable rates will go up again one day soon so don’t get used to them now and think that these rates are ‘normal.’

 

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