Should I break my fixed mortgage to move to a lower rate?

Ask for a quote on a specific date

A fixed-rate break cost is not a flat amount you can reliably guess from the rate difference. It can depend on your loan, remaining fixed period and the lender's calculation at the time. Ask your bank for its current figure and whether it may change before settlement.

If you have several fixed splits, ask what happens to each one. Moving a loan to a new bank may also involve discharge and legal work, while making an extra repayment within an allowed amount may be treated differently.

Compare like with like

Estimate the interest difference over the remaining old fixed period first, not just the first repayment under the new loan. Then include any new cash contribution and subtract all switching costs and an earlier cashback repayment.

Look beyond that date too. A shorter fixed term, offset feature or changed repayments may matter to your plans, but future rates cannot be known in advance. Do not compare a shorter new fixed term with a longer old one as though they carry identical certainty.

Waiting may be a valid option

You can ask about refinance options before the current term ends and time an application around expiry. If the break cost wipes out the likely benefit of moving today, waiting and negotiating a competitive offer with your bank can be the stronger choice.