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    • Pearson_88
    • By Pearson_88 30th Nov 17, 12:23 PM
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    Pearson_88
    Fixed Term Mortgage - Can you get out?
    • #1
    • 30th Nov 17, 12:23 PM
    Fixed Term Mortgage - Can you get out? 30th Nov 17 at 12:23 PM
    I bought my first flat two years go and is a fixed term mortgage for 5 years. It's down as a help to buy mortgage meaning I cannot remortgage with my current lender. The rates now are much improved and remortgaging would save me a small fortune.

    Although I am unable to remortgage with my current lender, am I able to go elsewhere and take advantage of the lower rates? Granted there may be charges but I'm not sure where I stand.

    Any advice would be appreciated.

    Thank you
Page 1
    • kingstreet
    • By kingstreet 30th Nov 17, 12:27 PM
    • 32,390 Posts
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    kingstreet
    • #2
    • 30th Nov 17, 12:27 PM
    • #2
    • 30th Nov 17, 12:27 PM
    There is nothing to stop you remortgaging subject to status, valuation, affordability etc.

    You will have to pay any early redemption penalty on your current mortgage.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • hayleylouise1991
    • By hayleylouise1991 30th Nov 17, 12:32 PM
    • 12 Posts
    • 1 Thanks
    hayleylouise1991
    • #3
    • 30th Nov 17, 12:32 PM
    • #3
    • 30th Nov 17, 12:32 PM
    your mortgage offer outlines the early redemption charge. be careful with H2B as going to another lender the new valuation will need to be approved by the H2B agent and your equity loan is reflective of new changes to the value and equity.

    why did you go on a 5 year fixed to begin with ... the rates are not much lower now than 2 years ago, not to warrant paying off the ERC with your current lender. ...
    • Pearson_88
    • By Pearson_88 30th Nov 17, 12:33 PM
    • 4 Posts
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    Pearson_88
    • #4
    • 30th Nov 17, 12:33 PM
    • #4
    • 30th Nov 17, 12:33 PM
    I will look into what this charge to see what this equates to but month-month the savings would be much more.

    Thanks!
    • kingstreet
    • By kingstreet 30th Nov 17, 12:36 PM
    • 32,390 Posts
    • 17,392 Thanks
    kingstreet
    • #5
    • 30th Nov 17, 12:36 PM
    • #5
    • 30th Nov 17, 12:36 PM
    your mortgage offer outlines the early redemption charge. be careful with H2B as going to another lender the new valuation will need to be approved by the H2B agent and your equity loan is reflective of new changes to the value and equity.

    why did you go on a 5 year fixed to begin with ... the rates are not much lower now than 2 years ago, not to warrant paying off the ERC with your current lender. ...
    Originally posted by hayleylouise1991
    I think this is HTB - MG not HTB - EL hence the comment about not being able to change products. Nothing in HTB - EL would change that but it would in HTB - MG.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Pearson_88
    • By Pearson_88 30th Nov 17, 12:42 PM
    • 4 Posts
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    Pearson_88
    • #6
    • 30th Nov 17, 12:42 PM
    • #6
    • 30th Nov 17, 12:42 PM
    Yes, I didn't need 'help to buy' i.e. no one else owns a proportion of the property; merely 10% down and 90% owed. I was ill-advised at the time and opted for the longer fixed term so that I knew what was coming out month-month without any major fluctuations. At the minute I am paying a much higher rate than the current rates from recent searches
    • kingstreet
    • By kingstreet 30th Nov 17, 1:10 PM
    • 32,390 Posts
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    kingstreet
    • #7
    • 30th Nov 17, 1:10 PM
    • #7
    • 30th Nov 17, 1:10 PM
    Yes, I didn't need 'help to buy' i.e. no one else owns a proportion of the property; merely 10% down and 90% owed. I was ill-advised at the time and opted for the longer fixed term so that I knew what was coming out month-month without any major fluctuations. At the minute I am paying a much higher rate than the current rates from recent searches
    Originally posted by Pearson_88
    If you put down 10% deposit how did you end up on HTB? There were plenty of 90% options outside HTB.

    Ill-advised? It sounds like you wanted longer-term payment certainty and now regret it because rates have fallen. The term for that is 'buyer remorse.'
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Pearson_88
    • By Pearson_88 30th Nov 17, 1:59 PM
    • 4 Posts
    • 0 Thanks
    Pearson_88
    • #8
    • 30th Nov 17, 1:59 PM
    • #8
    • 30th Nov 17, 1:59 PM
    Nothing at all to do with buyers remorse, knowing nothing about the world of mortgages I was relying on help and advice from others. Obviously hindsight is wonderful and I am assessing what options are available to me now
    • YHM
    • By YHM 30th Nov 17, 2:26 PM
    • 303 Posts
    • 99 Thanks
    YHM
    • #9
    • 30th Nov 17, 2:26 PM
    • #9
    • 30th Nov 17, 2:26 PM
    In summary, yes you can remortgage.

    Find a good broker, give them your figures, let them crack on and do the digging
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • kingstreet
    • By kingstreet 30th Nov 17, 2:32 PM
    • 32,390 Posts
    • 17,392 Thanks
    kingstreet
    Nothing at all to do with buyers remorse, knowing nothing about the world of mortgages I was relying on help and advice from others. Obviously hindsight is wonderful and I am assessing what options are available to me now
    Originally posted by Pearson_88
    Sorry, I thought you were suggesting you sought professional advice and had not come away with the product you required.

    I'm sure many people have selected a product which gave them the security they required then later found out to their cost that rates fell, leaving them paying what they would consider to be over the odds.

    No idea why you ended up with a HTB product? I'm sure in most cases, you could only put down 9.9% deposit and 10% would leave you unable to use the scheme, unless you applied to Aldermore, where HTB started at 85%?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • phillw
    • By phillw 30th Nov 17, 2:47 PM
    • 1,041 Posts
    • 622 Thanks
    phillw
    Yes, I didn't need 'help to buy' i.e. no one else owns a proportion of the property; merely 10% down and 90% owed. I was ill-advised at the time and opted for the longer fixed term so that I knew what was coming out month-month without any major fluctuations. At the minute I am paying a much higher rate than the current rates from recent searches
    Originally posted by Pearson_88
    Don't just compare the rate, you need to include any fees as well. Sometimes you might find you could save £900 interest over the next 3 years, it will just cost you £1000 to set it up. You'll probably have exit and setup fees.

    I don't think it was bad advice to fix 2 years ago. Although if you were planning on significantly increasing your equity then 5 years would be too long.

    Fixing and tracking at the right time takes a bit of skill and a whole load of luck.
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