We are stuck on a fixed rate of 6.4% til 30/09/12 with an early redemption penalty of 4% of capital sum owed (currently £73.5k). We can only overpay 5% per annum.
Should we swallow the redemption penalty (c£3k)and move to the market leading _base_ tracker, which is currently 2.79% (+£999) and allows overpayments? How do we work out what's best?
We want to pay off our mortgage as quickly as we can - the current term is 11.6 years.

Thanks for any advice

Hi there,

I'm afraid this isn't a simple answer and the best advice is to speak to an indpendent mortgage broker. You need to way up the costs of tmoving compared to the savings involved, and then incorporate the added savings of considerable overpayments, and work out how much quicker you would need to clear the mortgage in order to make remortgaging financially beneficial.

You also need to talk through the other benefits of changing rate and weigh up the risks of having a tracker product too. So I'm afraid I can't give you an answer without a much more detailed chat about your current circumstances.

Once again DanAronG is correct.

You want to be very careful you don't change mortgage lender for the wrong reason, as it can prive costly. So get independent advice before you make a decision.