Fixed Mortgage Deal

nsms

hi. need advice. im on a 2 year fixed mortgage deal paying 4.99% interest. with the current interest rate of 0.5% it is quite a big difference considering, can i make a claim on this basis?

lorweld

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whu

nsms wrote: »

hi. need advice. im on a 2 year fixed mortgage deal paying 4.99% interest. with the current interest rate of 0.5% it is quite a big difference considering, can i make a claim on this basis?

Claim for what?! You signed upto it and now rates have changed - that's the risk we all take wihen going on a fixed deal - would you claim if BOE rate was 6%?
BTW 0.5% is the BOE rate not mortgage rates

Peelerfart

This doesn't make any sense - sorry !. What's the question here ?

JMitchell_2

That rate isn't too horrendous anyway for a fixed rate, I was on 6.25 until recently. Depending what your LTV is. Don't read too much into the base rate, it's nowhere near what interest rates on new mortgages are. What is the penalty payment to get out of your current mortgage? I very much doubt it would be worth considering given the rate you're on.

As has already been implied, when you signed up to the mortgage, it should have been in the knowledge that if the rates went up, you'd be at an advantage as your payment remained the same but on the other hand if it went down, you still pay the same. I'm afraid it's just the premium you pay for the security of knowing what your (assumingly) biggest regular outgoing is going to be and I would say you won't have any joy in getting anything out of the bank.

Wutang_2

nsms wrote: »

hi. need advice. im on a 2 year fixed mortgage deal paying 4.99% interest. with the current interest rate of 0.5% it is quite a big difference considering, can i make a claim on this basis?

Yes I would definitely claim.

SuzieMum

claim for what? a fixed rate is something you take out to ensure you are happy with the repayments in case rates get worse, there is always a chance they will get better, I would just be pleased it is only 2yrs not 5 or 10. 4.99% is not that bad.

Wutang_2

SuzieMum wrote: »

claim for what? a fixed rate is something you take out to ensure you are happy with the repayments in case rates get worse, there is always a chance they will get better, I would just be pleased it is only 2yrs not 5 or 10. 4.99% is not that bad.

Claim the difference, what do you think she means?? Her rate is 4.99% and wants to pay the same as the BOE rate...!!

bunny999

Don't we all! OP - Which part of fixed don't you understand ?

diable

Wutang wrote: »

Claim the difference, what do you think she means?? Her rate is 4.99% and wants to pay the same as the BOE rate...!!

No one is paying the BOE rate my SVR is 4% as banks need to make some money and the BOE is not in the mortgage market yet, if you take out a fixed rate mortgage then you choose to take a gamble on rates holding or going up as well as down but knowing what your payments are ever month. I'd be happy with 4.99% especially if interest rates went up to 10% but if they went down then thats just tough luck.

Wutang_2

diable wrote: »

No one is paying the BOE rate my SVR is 4% as banks need to make some money and the BOE is not in the mortgage market yet, if you take out a fixed rate mortgage then you choose to take a gamble on rates holding or going up as well as down but knowing what your payments are ever month. I'd be happy with 4.99% especially if interest rates went up to 10% but if they went down then thats just tough luck.

I am mocking the original post...

and by the way, some people are paying tracker rates which parallel the base rate

"banks need to make some money"..thanks for that insight