Britannia Building Soc sent out a letter offering to waive my fixed rate pre-payment penalty clause and all set-up fees if I take out a new lower interest rate fixed term mortgage product within the next 2 days (hardly any notice given to make up my mind). I have done the sums and it is just not worth it on interest saving that amount to about £200 per annum to reduce my existing rate from 4.94% to 4.79% for 2 years or 4.45% for 3 or 5 years.
In 12 months time by existing 4.94% fixed term expires and I can then go back to their Standard Variable Rate which is currently 4.49% seems rather high) which some of my mortgage is already on anyway.
I am suspicious of the very short notice of this "special offer" is there something likely to be announced that I do not know about with all their interest rates as they seem rather high at the moment compared to Halifax variable rate of 3.5%. Britannia being a Mutual and not in receipt of government bailout funds may have not yet reduced its rates. I do not want to be locked into an extended fixed period if they are about to reduce all their rates (including variable) very shortly.
Not sure what to do at present. It may be worth rejecting this offer and waiting to see what happens and pay the 1% penalty to move to another product later.
Have I missed something - has anyone got any ideas?
Thanks
Graham