Locked into Fixed Rate Mortgage

tartandevil

HELP!

I had to renew my mortgage in August 08 and kept with my current lender - the best fixed rate I could get (3 years) was 5.89%.

However, with the reduction in base rate since August I could now expect to get 3.5% - 4%.

Having spoken with my lender they advise that I am locked in at the 5.89% rate for the 3 year term (unless I want to pay huge exit fees).

Does anyone know if I have any wriggle room at all to renegotiate my mortgage rate??????

tcall

I cant see why they would renegotiate your current deal. Why would they? Conversely, if interest rates had gone up and the bank wouldnt put your fixed rate up!

dunstonh

I had to renew my mortgage in August 08

Why did you have to do that?

the best fixed rate I could get (3 years) was 5.89%.

Shame it wasnt 5 years but its still a good fix.

Having spoken with my lender they advise that I am locked in at the 5.89% rate for the 3 year term (unless I want to pay huge exit fees).

That is correct. You opted for certainty of payment and that is what you have.

Does anyone know if I have any wriggle room at all to renegotiate my mortgage rate??????

None whatsoever. I dont know why you would want to either. You know exactly what your mortgage payments are going to be until Aug 2011. That is why you buy a fixed rate. That hasnt changed. Long before then trackers will be more expensive than your fixed and you have to factor in the cost of change meaning it wont be worth it.

Sooler

You wouldn't want your lender to have any wriggle to increase your rate when the base rate rises above it.