Come out of fixed motgage? help

asifsardar · 9 January 2009 at 5:48PM

Hi all,
I got a fixed mortgage at 6.9% in june last year for 3 years just before the credit crunch, Now the interest rates are coming down, is there any way to break free from the fixed mortgage and remortgage with same or another bank with a lower rate??
My currant mortgage is with Bank of Scotland.
Thanks in advance
Asif Sardar

_Andy_ · 9 January 2009 at 5:56PM

Yes but you would need to pay early repayment charges.

hethmar · 9 January 2009 at 5:59PM

As Andy says your original agreement will tell you what your early repayment charges will be - you need to work out whether the cost of those charges plus the cost of a new arrangement fee (if applicable) will still save money with a lower interest rate. Also check that you can actually get a mortgage with the much bandied low rates - many of them require 20% or more deposit. Your house will be worth less now than when you bought it so the deposit would be a percentage of the current price.