High fixed rate for 10 years - what to do?

deedub777

OK, so here's the background... I fixed a mortgage July last year at 5point something for 10 years as rates were beginning to soar and I felt that was the safest thing to do...
Tough luck I hear you say?

But then the credit crunch hit in a big way, the banks lost loads of money, rates dropped and they get bailed out by the government - so what claw back am I entitled to?

I've never deferred on a payment yet, always pay tax and insurance through PAYE and have had to change jobs to a lower salary.

So has this rant made me feel better, not really but in this exceptional economic situation, is there any flexibility in the mortgage contracts?

Anyone in the same situation and wished there was some get-out clause??

What do you think??

anselld

There is usually a fee for early redemption. Have a look in your offer paperwork.
Having said that 5 point something wont be too bad over the long term probably.

deedub777

anselld wrote: »

There is usually a fee for early redemption. Have a look in your offer paperwork.

Yes, there's a fee... it's huge.

paulfaz

Look at what 10 year fix's are available at now - that'll make you feel better. In three years time you may be looking back and thinking that you actually took out a fantastic deal...

minimike2

:rolleyes:

Here we go again.

Robert_Sterling_3

deedub777 wrote: »

What do you think??

It is the biggest crisis of all time ( since world war 2 )

and you are complaining because you are not better off

caracal_77

minimike2 wrote: »

:rolleyes:

Here we go again.

Exactly what I was thinking...

We're getting a few posts like this daily.

To the OP, looking at 8-9 years ahead, you're probably in a better situation than what you think. You also have the security of knowing exactly what you pay each month, which I assume is what you wanted to begin with.

lukekelly_2

5.x% for 10 years? Stop whining, it's a good deal!

opinions4u

deedub777 wrote: »

OK, so here's the background... I fixed a mortgage July last year at 5point something for 10 years as rates were beginning to soar and I felt that was the safest thing to do...

These are extremely uncertain times. As and when the economy recovers the government will need to control inflation growth and one way of doing this will be to hike up interest rates.

I think you made a good decision. Nothing has changed in the longer term that suggests it is a bad decision. History may prove it a bad call in 2019. Or it may tell you it was a fantastic decision.

Safest thing to do? Still is. And you can expect to pay a similar rate for a 10 year fix today! 6.79% over 85% of value.

But then the credit crunch hit in a big way, the banks lost loads of money, rates dropped and they get bailed out by the government - so what claw back am I entitled to?

You're entitled to comply with the terms and conditions of the mortgage. You took the upside of the deal (a fix that would protect you if rates go up) so why do you expect them to change the rules now to protect you from the downside? The lender has paid a fixed rate to borrow the money it has lent to you. They won't be able to get out of their deal as easily as you can.

I've never deferred on a payment yet, always pay tax and insurance through PAYE and have had to change jobs to a lower salary.

Your tax status or current employment position has absolutely nothing to do with your mortgage rate. Why should it?

So has this rant made me feel better, not really but in this exceptional economic situation, is there any flexibility in the mortgage contracts?

Only the flexibility (early redemption penalties) built in that you agreed to when you signed up for the deal. Ring them up to check. Hysterical laughter might cheer you up. If you get a more positive response name the lender here and watch the stamped begin!

Anyone in the same situation and wished there was some get-out clause??

I'm sure anybody and everybody in the same position wishes it. But your mortgage is for life (or at least feels like it) not just for 2009. Consider your reasons for wanting to fix long term, consider the cost of the same mortgage today and tell me what has really changed. Why should the current economic climate of uncertainty and worry affect your decision 6 months ago to take out a mortgage which absolutely guarantees that you know what your outgoings will be for 10 years?

What do you think??

I think you want to have your cake and eat it.

Wutang_2

deedub777 wrote: »

OK, so here's the background... I fixed a mortgage July last year at 5point something for 10 years as rates were beginning to soar and I felt that was the safest thing to do...
Tough luck I hear you say?

But then the credit crunch hit in a big way, the banks lost loads of money, rates dropped and they get bailed out by the government - so what claw back am I entitled to?

I've never deferred on a payment yet, always pay tax and insurance through PAYE and have had to change jobs to a lower salary.

So has this rant made me feel better, not really but in this exceptional economic situation, is there any flexibility in the mortgage contracts?

Anyone in the same situation and wished there was some get-out clause??

What do you think??

Pay the ERC and get on a 2 year tracker asap

Wickedkitten

What kind of claw back do you actually think you are entitled to exactly?