The Fixer: should I switch my mortgage?

We show homeowner how much he could save...

Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,

When my fixed-rate mortgage with Barclays came to an end recently, I was moved on to the bank's standard rate of 4.99%.

It's actually only slightly higher than the rate I was paying before, but I know there are better deals available and so am thinking about switching to another bank.

However, after 15 years in my current home, I only have about £30,000 left to pay off and hope to be mortgage free within five years.

Is it worth going through the hassle of switching my mortgage when it is so small?

G Smith, London

Dear Mr Smith,


The arrangement fees involved in remortgaging mean it may not be worth switching if you only owe a small amount on your mortgage. However, there are some great deals available at the moment.

HSBC, for example, has a five-year fixed-rate mortgage at just 1.99%, albeit with a £999 arrangement fee.

A quick calculation shows that staying on your current rate of 4.99% while paying off your mortgage for the next five years would cost you £3,959.97, whereas switching to the HSBC deal would mean paying out a total of £2,541.09 - including the £999 fee.

You could therefore save more than £1,400 by remortgaging, despite the small size of your loan. Probably worth the time it will take to arrange a switch!

Before making a decision, I would nevertheless recommend contacting a fee-free mortgage broker such as London & Country to get some independent advice.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.