stuck in interest only at 5.99% 4000 quid exit fee

the_root_of_all_evil

when i took out the mortage about a year ago 5.99 was actually a really good rate!

now i want o get out of the 3 year interest only fix it but the halifax tell me itll cost 4000 pounds :mad:

is ther anything i can do about it?

_Andy_

No, there isn't.
In any case you have a decent rate and piece of mind for the next couple of years.
My main concern would be that it's interest only, so overpay as much as you can.

BlameTheGame

Work out whether its worth paying the exit fees, if not then you have no choice but to stick. You took the gamble and it hasn't paid off.

beecher

5.99% is a good rate, historically. It isn't even that much higher than the rates they're offering now. Can't see it justifying adding £4000 to your mortgage, plus paying arrangement fees.

koexelek

BlameTheGame wrote: »

Work out whether its worth paying the exit fees, if not then you have no choice but to stick. You took the gamble and it hasn't paid off.

Harsh but true.

There is always an element of a gamble when you select a mortgage product.
if you get it wrong, you just have to grin and bear it.

Robert_Sterling_3

It is not compulsory to grin.

mrylandb

Every mortgage we've had, we seemed to make the wrong choice - svr tracker when we should have boebr tracker; boebr tracker when we should have fixed.
Going forward we are going to research a product make a decision based on the market conditions and economic environment and then do completely the oposite.

dimbo61

5.99% is only about 1% more than most current 5 years deals alot of lenders are offering today so try not to worry as others have said you have security for another 2 years.
If you have £4000 to spare why not overpay the mortgage each month as the more you reduce the debt the less interest you pay simple really.
JUST OVERPAY YOUR IO MORTGAGE

maveli

dimbo61 wrote: »

5.99% is only about 1% more than most current 5 years deals alot of lenders are offering today so try not to worry as others have said you have security for another 2 years.
If you have £4000 to spare why not overpay the mortgage each month as the more you reduce the debt the less interest you pay simple really.
JUST OVERPAY YOUR IO MORTGAGE

Plus the interest rate can go down only by 1% where as it can go up by 15%

the_root_of_all_evil

my concern is that when the interest rate hits 0.1% i will be in a terrible position as the mortgages available then will be 2.5% or there abouts and im at 5.99% IO.

i do have 4G to get out although that would leave a bitter taste,

i have been considering paying the 4G then paying off half my mortgage in cash and taking up the low rates that will become available when the IR plummets further still.

i was saving the money and enjoying good savings IR's when i took out the IO mortgage i was playing the 2 off each other, planning on a property crash happening i was going to look out for some repo's.

seemed a great plan at the time but then savings rates crashed but i was locked in on the mortgage. now theres still the mortgage to pay and next to nothing rolling in from the savings account. :eek:

more advice please? and thanks for the alreay posted comments

beecher

the_root_of_all_evil wrote: »

my concern is that when the interest rate hits 0.1% i will be in a terrible position as the mortgages available then will be 2.5% or there abouts and im at 5.99% IO.

I don't get where you get this from. Mortgages available at the moment are more than 2% above the base rate - I would be absolutely amazed if fixed rates of 2.5% appear, and if they do they'll have huge arrangement fees and only be for 1 year or so.

I wouldn't obsess too much about making money out of property - if you have a spare £4k then just overpay your mortgage, and keep overpaying as much as you can. You're not on a huge rate at the moment - have a look at some of the deals available out there and you'll realise they're nowhere near the BoE base rate.