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Another specific situation where we both fixed but with a product that had a 1% redemption penalty instead of 5% both deals were just over 4% one of the mortgages was moving from 1.4% but the LTV and loan were not massive so didn’t really jump that much as it’s a mature loan and the repayments have been less interest and more capital.
Due to selling one property and halving the mortgage on another with the proceeds, we assumed it would be 2 tracker deals to enable this but it was actually cheaper to fix both and pay the 1% redemption fees, once the cheaper product fees and interest were taken into account it offset the 1%.
This only works as the mortgages are not huge.
Hopefully by the time of the sale next year and 2 becomes 1 rates may have hopefully dropped a little but now we will look for a lower redemption fee as this can catch you out with changes in home plans and is often not something you think about when taking the mortgage out.
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Mr_Smyth
We're currently on a tracker mortgage (base rate +0.87%) as when our last deal expired last year, the talk was all of successive rate cuts in 2o24.
That's not really happened, and we nearly switched to a five year fixed on 3.89% recently.
That deal no longer exists, and the best rate with our current provider is now 4.09%.
Anyone else who has renewed or switched lately - did you stick or twist?
4.09% is still less than we're paying now, and the idea would be to keep paying what we're paying now so there was an overpayment every month.
Still bitter about Truss and Kwarteng - we were on 0.97% on our last deal.