currently on 3 year fixed, 4.95%... switch?

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paperclip

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hi, i've just over a year left on a 3 year fixed mortgage, with boi. it's 4.95.

i haven't really been keeping up with things, and would appritiate some advice.

would i be better off breaking this contract, paying the penalty, and switching to a tracker?

if so, what's the best deal around?

thanks
 
You won't be able to switch to a tracker as the Bank's have discountinued these.
Before anything else, you need to get onto BOI and find out what your breakage fee will be. That'll determine whether it is worth your while or not.
 
More importantly check what rate you would be going onto after the 3 year fixed is up. If its a tracker then you would be better to see out the remaining year as the tracker will disappear if you break out of the fixed now.
 
It's highly unlikely that with one year to go it's worth your while paying a penalty. We would need more details (penalty, mortgage amount etc) to calculate is it's worth your while breaking it.
 
You are getting interest relief on the interest. There are some decent 1 yr fixed rates at the moment, (because the feeling is that rates will continue to trend down!)
The key is timing, if you break when the fixed - variable is x you have to pay the diff & if rates go lower you gain.
It is a type of fixed income trade. Sorry could not be more helpful, so many variables
 
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