Midway through a 5 year fix with a penalty? You could still save money by remortgaging.

It goes without saying that if you are coming to the end of a fixed rate period, you should be reviewing lenders offers to find a competitive rate to switch to.

However the same could be said even if you are only midway through a 5 year fix with a penalty, you could still save money by remortgaging.

Historically low rates mean that home-owners locked into a longer term fix could benefit by switching deals even if there is penalty to pay.

Some remortgage deals also come with added benefits. For instance as well as offering cut price rates to win customers, some lenders such as Accord Mortgages also offer remortgaging home-owners £500 cash back.

UK mortgage rates are set so low that even after paying an early redemption charge you could find yourself better off over the course of a new deal.

For example home-owners who took out a 5 year fix for £112,000 at 5.19% in 2011 could save over £1,400 by switching to a 2 year deal at 2.36%. Repayments would fall from about £750 a month to just over £606 which is a significant saving.

What about the penalty?

Even after paying a penalty of 2%, you could find yourself saving a significant amount over the course of a new low rate deal.

When judging if it is worth switching, it is vital to calculate out the cost by using the early redemption penalty quoted in your current lender's offer. We can help you work this out, so call 0800 048 8828 for advice.

If you have a fixed rate deal and would like to find out what other mortgages are on offer to switch to and save money, speak to an adviser at Deal Direct.

We can make a review of your current mortgage offer and financial circumstances to see how much we could save you by remortgaging.

To find out how much you could save by switching to a new mortgage call us at Deal Direct on 0800 048 8828.