Stuck in a fixed rate!

Nessaw

I have 5 years left on my Northern Rock fixed rate @5.29%. ( Originally 7 year term) Obviously with the drop in interest rate Im left feeling that im paying far too much monthly and want to know if there is anything i can do?

_Andy_

Why do you feel you're paying too much? You have a decent rate.

hopefulfooluk

That's not a bad rate, I'm on 6.49 until next year! Work out if your redemption penalties & any associated fees are more than any potential interest savings you would make over the next five years if you went to a mortgage with a lower rate. If the RP is less than what you'd save, then remortgage and pay the penalty. If it isn't, stay where you are.

Mike1999

{Work out if your redemption penalties & any associated fees are more than any potential interest savings you would make over the next five years if you went to a mortgage with a lower rate. If the RP is less than what you'd save, then remortgage and pay the penalty. If it isn't, stay where you are.}

I agree with this and certainly makes sense. I also saw on another post on here a few days ago about a lender waiving their early repayment charges which was written on a blog but it was for Mortgage Express not Northern Rock. However, Mortgage Express are part of Bradford and Bingley which is nationalised which means the same may happen at Northern Rock.

The general view with regards to mortgage rates is that they will stay below 3% in 2009 and then start to rise in 2010. If this is the case then you've got a good rate as yes you'll benefit this year but by the end of 2010 you may wish you were on a fixed rate for 5 years at 5.29%!!!

Mike1999

Just saw this on the same blog: If cashflow is what matters in these uncertain times then look at fixed rate buy to let mortgages - preferably 3 or 5 years - 2 years may be cheap but do you want to be falling back onto LIBOR or BBR just at the moment inflationary pressures come to bear on the economy??

Looks like it could be a good idea to stay put!!!

Radiantsoul

Strikes me as a decent rate over the next five years. Trackers are a bit of a one way bet at the moment(things can only get worse for them).

Nessaw

Thank you all, I feel much better now. Just not very good at understanding all what is happening out there at present and needed reassurance. From a grateful single working mum.

TighterThanTwoCoatsOfPain

Mike1999 wrote: »

.....Mortgage Express are part of Bradford and Bingley which is nationalised which means the same may happen at Northern Rock.

I woudn't imagine this will happen

a) because they are paying back government loans so arent likely to 'let you off the hook'.

b) they have recently been told to start lending again and pay back the loan slower to try and help stimulate the lending market so you're more likely to be offered a new deal (post fixed term) rather than given a freebie to go elsewhere.