Here we go again!!! In July many so called experts were telling people to fix their mortgages because of the uncertainty at the time. Most brokers on the ground knew that the bank rate would have to come down over the next year and accordingly advised on tracker rates for 2 or 3 years. We are in the situation where everyone who fixed is feeling hard done by and want the lower rates that some people are experiencing. Now is not the time to do it as there is even more uncertainty how the markets are going to go.....fixed rates are around 3.99 to 4.59% at 60% loan to value and trackers now are almost 2% above base. If you are tempted by trackers you might as well forget them for a while as even though rates may still drop, the length that these trackers run could see you wanting to fix again in the next year or two as the base rate rises again. I think you will see the lows and the highs over the next 5 years and you will probably break even by staying as you are. If you have a 3% redemption that will probably cost you over 6.6K to get out of the deal and a further 1K to get a new deal and all this may save you £200p.m that is 12K over the next 5 years, seems like a saving but if you add the 7.5% onto the original amount you will only save £150p.m but your mortgage will be 7.5K higher than when you started.
In summary.....if these figures stack up I would stay as you are and stop thinking you've been short changed and realize that these low rate are artificially low and won't be here for too long.
Regards
Ian