Fixed rate mortgage

smilerleeds

My son has a problem, he took a mortgage out 20 months ago, on advice, on a fixed rate. Which of course at the moment is crppling him financially. He is tied for over 2 years more, his credit rating is not good. Any suggestions on how to reduce his outgoings?

_Andy_

If he's on capital repayment, possibly extend the term or temporarily go to interest only (if lender allows it).
You say '..of course at the moment is crippling him financially' - why is it 'crippling' him any more than when he took it out?

Robert_Sterling_3

His rate has not gone up.
He must have thought he would be able to make the payments when he arranged the fix rate loan.
What has caused the payments to be crippling now.

Cannon_Fodder

Not benefitting from recent reductions is not the same as being hit by increases...

If it is truly crippling, being fixed, he could not afford it then or now, it appears.

Have a look at the Debt-Free, Mortgage-Free and Budgeting forums for ideas on saving money.

Having a target, like an overpayment if possible on his mortgage, helps to focus the mind on money management.