Rate reduction on a fixed rate mortgage?!
Mrs.T.B
Posts: 7 Forumite
I have a 2 year fixed rate mortgage with Halifax, ending April 2010, and I am considering asking them to help me by reducing the rate I pay to avoid any future problems with my being able to meet the monthly charges. Any one done something similar or have any advice on this matter?
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Comments
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Welcome to the boards Mrs T.B.
My advice is 'Don't embarrass yourself'. You'd be wasting your time and drawing attention to yourself.
I wish you luck all the same.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:0
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I have a 2 year fixed rate mortgage with Halifax, ending April 2010, and I am considering asking them to help me by reducing the rate I pay to avoid any future problems with my being able to meet the monthly charges. Any one done something similar or have any advice on this matter?
A few questions:
1) What rate are you currently paying?
2) Why are you now claiming that you can't afford it?
3) How much is the penalty for repaying your mortgage during the fixed rate period?
4) Why did you choose a 2 year fixed rate in the first place?
5) How long did you take the whole mortgage out for (e.g. 25 years)?
6) If interest rates were significantly higher in April 2010, how were you planning to meet the payments for the remainder of the mortgage?0 -
We are currently paying 6.34%.
A friend made the suggestion that we contact our mortgage provider to say that we feel that in the future we may have problems meeting the payments and so we are asking for help before this becomes an issue. We just wanted other peoples opinions on the matter before we decided if it was a wise idea or not!
If we pay it off now we will pay 4.000% of £195000.
We opted for a fixed rate so we new what the monthly payments would be, and we can meet them but its tight.
The mortgage is over 35 years.
If rates are higher in April 2010 we would probably have to go interest only until our finances improve. Unfortunately we will struggle to remortgage i think as i will no longer be working and we are currently in a negative equity situation with the drop in house prices.
I suppose its just being cheeky to see if we can benefit from the rate cuts.
Your comments are appreciated.0 -
Are you certain that your finances are going to improve?0
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I suppose its just being cheeky to see if we can benefit from the rate cuts. Your comments are appreciated.
People who choose a fixed do it as they want stabiity of payment, however on the downside that means if rates drop, yr rates stays the same.
If u wanted to benefit from rate cuts you should have chosen a tracker Fixed is fixed and u have signed a contract, if u want to break that contract it is going to cost you £7,800.00!! Does this make good financial sense?0 -
We are currently paying 6.34%.
A friend made the suggestion that we contact our mortgage provider to say that we feel that in the future we may have problems meeting the payments and so we are asking for help before this becomes an issue.
It's wise to ask for help before you simply miss payments. But asking for help just in case something happens in 6 months time is a waste of energy.
We just wanted other peoples opinions on the matter before we decided if it was a wise idea or not!
Fair enough. It's pointless.
If we pay it off now we will pay 4.000% of £195000.
You are unlikely to be better off doing this then. Leave things as they are.
We opted for a fixed rate so we new what the monthly payments would be, and we can meet them but its tight.
With the greatest respect, you have taken one hell of a risk on your financial wellbeing when the two years is up.
The mortgage is over 35 years.
You really have overstretched yourselves. Not much leeway to extend the term there if things do go wrong.
If rates are higher in April 2010 we would probably have to go interest only until our finances improve.
Your lender is under no obligation to allow this. I personally don't think you have taken this commitment as seriously as you should have done.
Unfortunately we will struggle to remortgage i think as i will no longer be working and we are currently in a negative equity situation with the drop in house prices.
Right, so you have lost an income. Now we are beginning to understand your reasons for the request. If you are going to be unable to meet all or part of any payment let your lender know well before it happens. They will want to fully assess your income and outgoings before agreeing to this though.
Your comments are appreciated.0 -
35 year mortgage is terrifying. I took a 25 year one and frequently wish I'd only done 20 yrs.0
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You only took the mortage out eight months ago. Has anything changed in your circumstances since you took out your mortage? I don't see why the bank would have any reason to change your interest rate if you are still able to pay at the moment. Taking out a fixed rate you gambled that you may end up paying over the odds in order to know definitely what you will be paying and protect yourself from potential interest rates. At the moment you you probably did the wrong thing, you should have taken a tracker but well, that's life. You can't always get it right.
Yes interest rates are lower at the moment but I'm not sure you'd get a lender to lend to you now for the full amount of the mortgage you need, you woud need to pay a penalty. Interest rates are low but it is hard to get banks to give you those interest rates. Lenders are more conservative now than they have been and with a 35 year term I think that would raise lenders alarm bells.
I would advise you overpay as much as you can and make you have an emergency savings pots so you have a rainy day fund in case you did run into problems. Goodluck with it.Top wins in 2018: Trip to Iceland, helicopter ride over london, couples massage, £300 flight from Pringles, trip to Paris, cocktail making class and afternoon tea up the shard. .
Top wins in 2017:holiday to the Bahamas, trip to Paris, meal with champagne, a week in a manor house in France with £500 spending money.0
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