Can I do this? - Please Help me..

csrivats999

Hello - I am on a 2 year fixed rate mortgage with First Active which I signed up in Oct last year.

Looking at the rate cuts is there any point trying to negotiate a better deal with First active or even move mortgage ?

I understand this is a tough question but just wondering if anyone out there has done something similar?

Many thanks for your time

mrcow

You can always look to negotiating. You probably won't get far but it's worth a try.

Take a look here too:

http://www.moneysavingexpert.com/mortgages/fixed-discount-mortgage-guide#ditch

beecher

You would have to pay an Early Repayment Charge - likely to be hefty if you only signed up 5 months ago. Have a look at your documentation to see how much it is- no point in trying to negotiate your way out of it as it would have to be paid. Then work out if you can make your money back by changing mortgage deal.

Fight_Club

Give it a few more months and you might even be happy your on a fixed rate. If you had a five year fix I would bet money you would be happy you were on it (after five years of course).

In my humble opinion.

mrcow

Fight_Club wrote: »

Give it a few more months and you might even be happy your on a fixed rate. If you had a five year fix I would bet money you would be happy you were on it (after five years of course).

In my humble opinion.

Not if the past 10 odd years have been anything to go by?

Never understood people who fix tbh. I've been on a tracker since 1998 and have consistently been lower than any fixes offered at the time. I always figured with most deals "win some, lose some" but when it comes to fixes, it just seems "lose some".

Unless anyone can come up wioth any great fixes they've done in the last 10 years to contradict me? (I'm on a tracker + 0.6% btw)

Rolandtheroadie

mrcow wrote: »

Not if the past 10 odd years have been anything to go by?

Never understood people who fix tbh. I've been on a tracker since 1998 and have consistently been lower than any fixes offered at the time. I always figured with most deals "win some, lose some" but when it comes to fixes, it just seems "lose some".

Unless anyone can come up wioth any great fixes they've done in the last 10 years to contradict me? (I'm on a tracker + 0.6% btw)

I could have been on SVR for the past 10 years. Your tracker would have been lower than anything "offered at the time". The Fix comes into it's own when interest rates go up.

In August 03 with rates at 3.5%, I could have fixed at 4.35% with RBS for 5 years. You would have been paying 4.1%. By November 03 you'd be on 4.35% also. By February the following year (04) you would be up to 4.6%
In July 2007, it peaked at 5.75 (your on 6.35 by this time, i'm still on 4.35%.) By the time my fix runs out in August 2008, your still on 5.6% to my 3.5%.

Trying_to_be_good

mrcow wrote: »

Unless anyone can come up wioth any great fixes they've done in the last 10 years to contradict me? (I'm on a tracker + 0.6% btw)

I had a two-year fix at 3.69% from Oct 03 - way below any trackers/SVRs at the time, and allowed me to start really saving to overpay the capital balance (or to buy in a really nice area when I moved, as it turned out, with a bigger mortgage ...).

I then took a dicsounted variable rate, learnt the lesson that discounted variable does NOT mean base rate tracker, and switched to a base rate tracker. But thinking about fixing soon, as I think base rates are only going one way.

mrcow

Trying_to_be_good wrote: »

I had a two-year fix at 3.69% from Oct 03 - way below any trackers/SVRs at the time, and allowed me to start really saving to overpay the capital balance (or to buy in a really nice area when I moved, as it turned out, with a bigger mortgage ...).

Thanks for that.

A two year fix at 3.69% in October 03 was a good offer though. Unless you had a set-up fee for the privilege? Let us know if you did?

Many fixes do not offer 0.19 over base rate - they are more than that.

My tracker is a lifetime one - I just can't justify ditching it.

beecher

I had a 3 year fix at 3.89% in 2003 when the base rate was 3.5%. By the end of the term the base rate was 5% so it was certainly worth my while. It cost me £200. I prefer fixed rates, but probably because I remember sky high interest rates and think we may well go back to seeing them soon,.