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I am currently on a 5-year fixed rate mortgage (5.9% I think), that I signed up to in September 2007 and therefore expires toward the end of next year.
What's the deal with switching mortgage mid-term? (possible/impossible etc?)
Should be fine, as long as there are no over hanging penalties after the end of you special rate period.
Have a look at what redemption penalties you currently have because it may be in your interest to pay a penalty and switch now because 5.9% is pretty high and you could get a better deal now with lower monthly payments.
Possible but there will no doubt be penalties, how much depends on your product. Unless you've got a huge mortgage and have a big lump sum to pay in or you have found a very good deal I would imagine that your penalties and charges will far outweigh any savings you will make over the next 8 months from your new mortgage.
Check your conditions, but be prepared to bite the bullet and wait till the end of the fixed period when you are free to move.
"I would imagine that your penalties and charges will far outweigh any savings you will make over the next 8 months from your new mortgage."
I would agree with this. Currently I'm on 6.4% and looking at a 3.4% mortgage which will save me over £300 per month. However the early redemption fee is more than I would save over the 2 year fixed deal I would be going for.
However apparently I can book this deal now to start in July when my current mortgage ends and therefore secure the 3.4%. Rates are only likely to go up over the next few months..
What's the deal with switching mortgage mid-term?
With Nationwide the penalty is 3% of the outstanding loan, just to give you a possible ball park figure.
FunkyDunc interested who the 3.4% deal is with and whether you can make overpayments?
...penalties and charges will far outweigh any savings you will make over the next 8 months from your new mortgage...
Yeh, I'll check the details when I get home.
About 18 months left on my current mortgage deal, paying £640 per month, outstanding balance around £90k.
If there's (for example) a 3% penalty, that's £2700.
So to make it worth my while I'd need to find a mortgage deal with payments of <£490/mth to give me any financial benefit.
I'll have a look around, just to see...