Oh wise B3tans with mortgages
If I have a 5 year fixed rate mortgage (which I do), do I have to stick it out or can I switch lenders after say 2yrs and 3 mths? I understand that there will most likely be some fees of some sort involved.
( sandettie light vessel automatic New Twitter - @bollocksreally, Tue 11 Aug 2009, 1:05, 4 replies, latest was 16 years ago)

Not quite mortgaged up yet...
In the process of it though.

You can normally buy yourself out of a fixed rate deal, but less than halfway through a five-year deal is likely to set you back a fair few grand, I'm afraid.

The fees vary from deal to deal, but they would have been documented in the initial mortgage offer, and presumably within the mortgage agreement you signed.
( TheMagicDwarf is back like ballroom dancing, Tue 11 Aug 2009, 4:57, Reply)

Yes you can leave
but as has been said you will need to pay a very large fee.
( Mrs Entity is in hiding., Tue 11 Aug 2009, 9:18, Reply)

Here's a thought for you:
why not ask a financial advisor? You might get some, you know, reliable advice.
(Slip Digby is a meat puppet, Tue 11 Aug 2009, 10:08, Reply)

^^ What they said...
So, what I think you need to know is:

1) What's your monthly saving going to be by switching accounts. And assuming rates stay the same, what would you save over the term of your current mortgage (upside)
2) What will you be charged by your current lender for switching (% penalty and early repayment fees)
3) What will the new lender charge you (arrangement fees - could be £500+, legal fees, survey)

If 1 is greater than 2 plus 3 then it may be worthwhile, but if it's not by a lot, then consider the impact in terms of hassle - it could be more trouble than it's worth. In my case is was worthwhile as it let me pay off my mortgage several years early.

For saving money, it might also be worth thinking about changing energy suppliers, home insurance, car insurance, and so on - if if you're doing that - don't forget to do it via one of the cashback sites.

Always worth a look on moneysavingexpert.com for these sorts of thing.

EDIT: Don't try to do mathematical functions in posts kids, it took me 4 attempts to get this one up here, and I eventially had to write it out longhand...
( Fireflier La la la la, not listening on, Tue 11 Aug 2009, 10:26, Reply)