Fixed Rate Mortgage.

Mrbluesky70

In September 2008 i bagged myself a mortgage fixed at 6% thinking i had got myself a good deal, little did i know what was round the corner.

Rates hit the floor now i find myself stuck with a 6% mortgage with a £3000 redemption penalty.

What should i do?

beecher

Work out if a cheaper rate would cost you less than £3000 over the remainder of your term. Factor in arrangement fees too.

Other than that, there isn't much you can do to be honest - interest rates will increase at some point and you might still be in a good position, long term.

leemagners

snap i am in the same situation so frustating and like wise bagged my fixed rate for 3 years last september at 6.39% with halifax.
so unfair and feel robbed:mad:

ChuiMartinez

you shouldn't exactly feel robbed...what rate can you get at the moment? unless you have a huge deposit, which given the rate you are on i suspect not, then at the moment you're not going to do a significant amount better

riles

leemagners wrote: »

snap i am in the same situation so frustating and like wise bagged my fixed rate for 3 years last september at 6.39% with halifax.
so unfair and feel robbed:mad:

It is hard to read posts like these and continue to follow the board etiquette rules :rolleyes:

_Andy_

If you think having financial stability and a product that you freely chose is 'unfair' or 'being robbed' you have led a rather sheltered life.

Robert_Sterling_3

Rather than say "It is unfair" it would be perfectly Ok to say "I was unlucky" and is it possible to improve my situation.

andrewmp

Mrbluesky70 wrote: »

In September 2008 i bagged myself a mortgage fixed at 6% thinking i had got myself a good deal, little did i know what was round the corner.

Rates hit the floor now i find myself stuck with a 6% mortgage with a £3000 redemption penalty.

What should i do?

I'm the exact same position but I don't really care as rates may well shoot back up in say three years time but I'll have mine fixed.

flight1

I also had a fixes rate for 2 years ending in Aug2010. I went to A&L yesterday about another matter and the advisor noticed I was on 6.8%. He looked into this and advised we could get a fee saver 3.99% for 5 years. The redemption fee is £3500 but the general saving is over £4000 and I feel this is a good rate for 5 years. I have an appointment for Thursday to cahnge.

HenryMungo

In the same position myself -decided to take the plunge and go for the 3.99% -it pays for itself in just over 18 months plus I'm paying a lot less each month, being cash strapped at the moment it was an important factor for me.

HM