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    • MrCrypt
    • By MrCrypt 15th Jul 17, 7:37 AM
    • 5Posts
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    MrCrypt
    Dumb question. Breaking fixed term?
    • #1
    • 15th Jul 17, 7:37 AM
    Dumb question. Breaking fixed term? 15th Jul 17 at 7:37 AM
    Hello

    I'm new to the forum and mortgages

    I have a probably dumb question. If you were to take out a fixed mortgage for say 10 years, with a term that was short (e.g. 10-15 years instead of 25-30), are you 'locked into' that deal? I'm thinking along the lines in which say one of the people on the mortgage lost their job so things became tight - would you be allowed to break the fixed term and port onto a different mortgage with lower repayments (i.e. extend the term) or doesn't it work like that?

    I see mortgages have exit fees but I think these relate to if you pay the mortgage off early?

    Thanks
    Last edited by MrCrypt; 15-07-2017 at 7:38 AM. Reason: Spelling!
Page 1
    • Westminster
    • By Westminster 15th Jul 17, 8:07 AM
    • 759 Posts
    • 462 Thanks
    Westminster
    • #2
    • 15th Jul 17, 8:07 AM
    • #2
    • 15th Jul 17, 8:07 AM
    The exit fees are still payable regardless of reasons.
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

    I'm a volunteer to help the boards run smoothly, and I can move and merge posts on there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • MrCrypt
    • By MrCrypt 15th Jul 17, 8:16 AM
    • 5 Posts
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    MrCrypt
    • #3
    • 15th Jul 17, 8:16 AM
    • #3
    • 15th Jul 17, 8:16 AM
    The exit fees are still payable regardless of reasons.
    Originally posted by Westminster
    I'd have no problem/issue paying an exit fee

    I'm asking if it's possible to break a fixed term (e.g. a 10 year fixed with a mortgage term of 10/15 years) sometime during the term if needed, say to port onto a mortgage with a longer term (e.g. variable rate with term extended to 20 years) to bring down repayments if one of us lost a job? Would it be as simple as saying we want to switch and pay the exit fee, or are we pretty much 'fixed into' the fixed deal for the 10 years?

    Sorry, initial post may not be best worded.
    • debtisnotme
    • By debtisnotme 15th Jul 17, 8:28 AM
    • 103 Posts
    • 77 Thanks
    debtisnotme
    • #4
    • 15th Jul 17, 8:28 AM
    • #4
    • 15th Jul 17, 8:28 AM
    As well as an exit fee you would likely have early repayment fees of a % of your loan. The best thing to do is take the mortgage over a longer term and over pay it, this way you have the flexibility of lower payments without neededing to break the terms of your fixed rate.
    Debt on 25/5/17
    Mortgage £61,999 £59,335
    Secured loan approximately £20,000 £19,353
    Unsecured debt in DMP with Stepchange £38,887 £37,763
    • glentoran99
    • By glentoran99 15th Jul 17, 8:33 AM
    • 4,409 Posts
    • 3,293 Thanks
    glentoran99
    • #5
    • 15th Jul 17, 8:33 AM
    • #5
    • 15th Jul 17, 8:33 AM
    I'd have no problem/issue paying an exit fee

    I'm asking if it's possible to break a fixed term (e.g. a 10 year fixed with a mortgage term of 10/15 years) sometime during the term if needed, say to port onto a mortgage with a longer term (e.g. variable rate with term extended to 20 years) to bring down repayments if one of us lost a job? Would it be as simple as saying we want to switch and pay the exit fee, or are we pretty much 'fixed into' the fixed deal for the 10 years?

    Sorry, initial post may not be best worded.
    Originally posted by MrCrypt
    If losing a job meant you were getting it tight. the chances of switching to a different deal would be close to zero
    Last edited by glentoran99; 15-07-2017 at 8:36 AM.
    • MrCrypt
    • By MrCrypt 15th Jul 17, 8:41 AM
    • 5 Posts
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    MrCrypt
    • #6
    • 15th Jul 17, 8:41 AM
    • #6
    • 15th Jul 17, 8:41 AM
    If you lost your job the chances of switching to a different deal would be close to zero
    Originally posted by glentoran99
    I'm not sure that's true - I have two sources of income plus partners income, so if either lost main job we'd likely still have sufficient income for a more 'normal' term going off lenders calculators.

    We're both under 30 with 50% deposit and was looking at clearing mortgage in 10 years (very doable) hence looking at a 10 year fix and asking the question
    • MrCrypt
    • By MrCrypt 15th Jul 17, 8:42 AM
    • 5 Posts
    • 0 Thanks
    MrCrypt
    • #7
    • 15th Jul 17, 8:42 AM
    • #7
    • 15th Jul 17, 8:42 AM
    If losing a job meant you were getting it tight. the chances of switching to a different deal would be close to zero
    Originally posted by glentoran99
    Ah I see you've changed post nah, we should still be okay
    • Dandytf
    • By Dandytf 15th Jul 17, 8:59 AM
    • 702 Posts
    • 295 Thanks
    Dandytf
    • #8
    • 15th Jul 17, 8:59 AM
    • #8
    • 15th Jul 17, 8:59 AM
    Hello

    I'm new to the forum and mortgages

    I have a probably dumb question. If you were to take out a fixed mortgage for say 10 years, with a term that was short (e.g. 10-15 years instead of 25-30), are you 'locked into' that deal? I'm thinking along the lines in which say one of the people on the mortgage lost their job so things became tight - would you be allowed to break the fixed term and port onto a different mortgage with lower repayments (i.e. extend the term) or doesn't it work like that?

    Thanks
    Originally posted by MrCrypt
    Lost my job 1 overpayment saved my home found another job almost 3months later


    Consider making overpayments reguarly as a safety net against unemployment

    The overpayment amount isnt important regualar overpayments are a neccesity
    small medium or large
    Last edited by Dandytf; 15-07-2017 at 9:02 AM.
    sc dmp 2012 13k

    Jan 2017 7380 paid. 50% ish...
    • buttonmoon
    • By buttonmoon 15th Jul 17, 9:32 AM
    • 105 Posts
    • 56 Thanks
    buttonmoon
    • #9
    • 15th Jul 17, 9:32 AM
    • #9
    • 15th Jul 17, 9:32 AM
    I took out a longer mortgage with a lower repayment but overpay each month so my mortgage will be paid off many years early fingers crossed. I know that if I lost my job that I could still manage to pay my mortgage. If you had shorter mortgage on a fixed term deal for 10 years (which I expect has a much higher interest rate than shorter fixes) and you lost your job you would need you get a new mortgage with a lower repayment (but how are you going to do that if you lost your job) and pay any exit fees to get out of your fixed rate deal.
    • AnotherJoe
    • By AnotherJoe 15th Jul 17, 9:46 AM
    • 7,053 Posts
    • 7,519 Thanks
    AnotherJoe
    I'm not sure that's true - I have two sources of income plus partners income, so if either lost main job we'd likely still have sufficient income for a more 'normal' term going off lenders calculators.
    )
    Originally posted by MrCrypt
    There really seems little point taking out a 10year fix in that case, take a longer term which will be ata lower rate, and overpay at an amount that approximates to a ten year term. Just make sure it's one that doesn't have limiting overpayment conditions.
    • MrCrypt
    • By MrCrypt 15th Jul 17, 12:14 PM
    • 5 Posts
    • 0 Thanks
    MrCrypt
    There really seems little point taking out a 10year fix in that case, take a longer term which will be ata lower rate, and overpay at an amount that approximates to a ten year term. Just make sure it's one that doesn't have limiting overpayment conditions.
    Originally posted by AnotherJoe
    Thanks - I think this is what we're going to do in hindsight
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