Should I switch mortgage or wait?

Jackie D

Registered User
Messages
83
Hi, On a 3yr fixed @ 4.99% which runs out in June 2010.
Would it be advised to hold out or switch next year and pay a penalty in order to save before June 2010? What way are you penalised? Thanks
 
Penalty depends on lender, the best thing to do is contact them to be sure.
Hopefully there will not be a penalty.

If not then I would advise moving to the variable and if fixed rates come down to a more attractive level you can then refix in the future without penalty (there may be an admin fee)
You will have to weigh up the costs of switching too, there may be legal fees of about €1000. Some banks offer a free switch but you must stay with them for 5 years.