The latest OCR cut means banks are more competitive than ever, so now’s your chance to negotiate hard for a good deal. Your current lender won’t tell you about break fees unless you ask, but it’s definitely worth it if you’re one of the many people stuck on rates around the 6% mark.
We’ve been hearing stories of refinancing where new lenders are putting up enough money to cover all, or nearly all, of the break fee – as well as borrowers who are able to add the break fee to their loans and still be considerably better off in the long run. Talk to your lender and run the numbers; this might be the perfect moment to switch from an interest-only loan to principal-and-interest. Or you might like to wait a few more months: some experts are predicting a 1. 5% OCR.