Back in April I did the sensbile thing (at the time anyway!) when renewing my mortgage deal by taking a 3yr fixed rate deal at a good 5.29%. Given the current economic climate we're in im now considering ditching this deal in favour of a tracker deal I can get at 1.49% over base rate, ie 3.49% currently. The only sticking point is the £2,900 penalty i'll have to pay to get out of my current deal & the £700 fee to set the new which would bring the capital debt to £100k. Current repayment is £662/mth which i just round up to £700, under the new mortgage the payments would be £602 which i'd plan on upping to £700 still. By doing some maths i've forecasted that come April 2011 when my fixed deal would end as long as i keep up the overpayments i'll be more or less owing the same capital amount, but i'd be better off if the rates dropped any further. Other advantages are no penalties or tie ins & its an offset mortgage so current account balance would reduce interest costs a little. Plus there's the flexibility that should I need a little extra cash one month I can always back off the payment to the minumum. So what would you do? Would you stay as you are to avoid the additional capital debt, plus if something goes wrong & rates shoot up you'd be safer? Or would you try & benefit from the still declining economy & probability of futher rate cuts & hope rates dont go back in a couple of years time making this a pointless move!? Just to add im thinking of doing this because im struggling in the current climate, I have a good stable (i think!) job with negligable other debt bar the mortgage so can happily afford the current payments, I just loath paying the robbing b'stad banks too much interest!!!