Found 19th Dec 2008
Okay well we all know the rates of mortgages has hit an all time low and will probably go lower in the next few months. My problem is i've got 3 mortgages all that have been on fixed terms. One at 5.89% at 3 years remanining, one at 5.49% with 4 years remaning and a final one as a Buy To Let at 6.59% with only 1 year left. As its predicted within a few weeks these rates will probably be double if not more what is available market.

My question is is there any way I can get out of these fixed terms? Or can I renegotiate with my lender to reduce these terms?

If not do you think it is more viable to pay the breaking fee as it might make things cheaper in the long run?

All help and advice appreciated.

  1. Misc
  2. Mortgage
10 Comments

Banned

ALL MOrtgages are different so you'll have to read the T&C's of each. You wont be able to get out of paying the early redemption penalty.

Original Poster

any idea whether it could work out more beneficial to actually pay that off?

If you switch mortgages then you've got the early repayment fee then on top of that is the set up fee for a new mortgage. Plus the time taken to do this etc. Most places are now running mortgages with about approx 1% above base rate (2%) but these will only give you mortgages of approx 75% so you need to have approx 25% equity in the homes based at current prices.

I've got a fixed rate at 5.33% to run until September and up until about two months ago was still a good deal. I keep thinking about changing it but I think rates will increase again early 2010 so I personally wouldn't bother changing.

mhh1981;3808464

If you switch mortgages then you've got the early repayment fee then on … If you switch mortgages then you've got the early repayment fee then on top of that is the set up fee for a new mortgage. Plus the time taken to do this etc. Most places are now running mortgages with about approx 1% above base rate (2%) but these will only give you mortgages of approx 75% so you need to have approx 25% equity in the homes based at current prices. I've got a fixed rate at 5.33% to run until September and up until about two months ago was still a good deal. I keep thinking about changing it but I think rates will increase again early 2010 so I personally wouldn't bother changing.



3% mortgages? links please.

Original Poster

But if you take out a 5 year fix mortgage on say like 3% wouldnt that be 50% saving for 5 years?

Banned

For the ones with a short term, you should approach the relative mortgage company as they may be willing to re-negotiate a better rate early to avoid losing a customer.

4Site;3808593

But if you take out a 5 year fix mortgage on say like 3% wouldnt that be … But if you take out a 5 year fix mortgage on say like 3% wouldnt that be 50% saving for 5 years?



There are no 3% rates.

What is the LTV?

Original Poster

I think there will soon though

Banned

chester123;3808651

There are no 3% rates.What is the LTV?


They were giving an example.

nationwide base rate is 4% from 1st Jan

I pay 2.24% with Nationwide currently but only have £100 capital outstanding. Just rang to get £41,000 overpayment back off of them to put in tescos internet saver at 6%

Don't pay tax so laughing now at these rates :-D

when the interest rates dropped to 3% my mortgage went to 3.89%...I'm still hoping they drop it further.
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