Woolwich fixed rate mortage at 4.39%

porky22

Hi Guys & Girls,
just spoke the nice people at the Woolwich!about coming off my new fixed rate 2 year deal which started in Jan 09 at 4.39%,yes I know I should have waited to see what was happening in the mortgage market but I am self employed and it took me six months to get a mortgage,which was with Northern rock before and they were not renewing fixed rates to exsiting customers the story is I would have to pay £4101 to buy out the fixed rate but thought as the rates are so low at the moment this could easliy be recouped over a year or so(wrong)they said they would put me on a rate that would save me about £70 a month cannot remember the rate but it must be 4.0% but I asked what there standard variable rate was and the reply was 1.59% and I said could I go on to that rate if I buy out the fixed rate they said I cannot go on that rate.CAN THEY DO THIS..is this illegal? They said I could only go on the variable rate when my 24 months is up,but I thought if I bought out of the two year fixed deal then they would stick me on the variable rate.Maybe they just want to make some money out of me?
Please any advice would help.Thanks

beecher

What on earth is wrong with a rate of 4.39%? I've just jumped at the chance of fixing at 4.54%!

Woolwich's SVR is 3.24% and not 1.59% which is their base rate. You can't automatically be put onto either of these rates.

Stick with what you're on as you're not going to make back £4101 plus arrangement fees over 2 years.

System

Until some paragraphs appear that's too painful to read.

porky22

Hi
thought if I changed to there SVR it would save me hundred of pounds per month,like the people who are now paying peanuts for there mortgages,living in a dreamworld as usual!

beecher

porky22 wrote: »

Hi
thought if I changed to there SVR it would save me hundred of pounds per month,like the people who are now paying peanuts for there mortgages,living in a dreamworld as usual!

Well I've just come off my SVR which was 3.5% to fix my rate as SVRs have only one way to go and that's upwards. You're not paying much more than most SVRs, and less than some!

The people who are paying peanuts for their mortgages are on tracker rates which were set up a while ago.

Personally I'd say your biggest mistake was not to fix for longer so I'd keep an eye on your LTV and overpay as much as possible if need be. By 2011 we may well be in a situation with high rates.

porky22

Joeskeppi wrote: »

Until some paragraphs appear that's too painful to read.

Note to self must go to big school in my next life!

Gwalia

beecher wrote: »

Woolwich's SVR is 3.24% and not 1.59% which is their base rate. You can't automatically be put onto either of these rates.

I thought that Woolwich SVR is currently 4.99%, at least that's what they told me.

beecher

Gwalia wrote: »

I thought that Woolwich SVR is currently 4.99%, at least that's what they told me.

Sorry about that - I can't even find where I got 3.24% from earlier. From what you say the OP is presently on a deal lower than the SVR so he should be thankful Woolwich don't say 'yes, fine you can move to the SVR', take the £4000 and charge him more!!

Trying_to_be_good

Woolwich mortgages don't revert to SVR any more, they revert to a tracker rate, so that's probably where the lower rates came in. On the current fixes I found:

BBBR + 1.49%, currently 1.99%, variable for the remaining term of the mortgage

Tom_Saunders

porky22 wrote: »

Hi Guys & Girls,
just spoke the nice people at the Woolwich!about coming off my new fixed rate 2 year deal which started in Jan 09 at 4.39%,yes I know I should have waited to see what was happening in the mortgage market but I am self employed and it took me six months to get a mortgage,which was with Northern rock before and they were not renewing fixed rates to exsiting customers the story is I would have to pay £4101 to buy out the fixed rate but thought as the rates are so low at the moment this could easliy be recouped over a year or so(wrong)they said they would put me on a rate that would save me about £70 a month cannot remember the rate but it must be 4.0% but I asked what there standard variable rate was and the reply was 1.59% and I said could I go on to that rate if I buy out the fixed rate they said I cannot go on that rate.CAN THEY DO THIS..is this illegal? They said I could only go on the variable rate when my 24 months is up,but I thought if I bought out of the two year fixed deal then they would stick me on the variable rate.Maybe they just want to make some money out of me?
Please any advice would help.Thanks

What is wrong with 4.39% ? Im on 5.99 and it still ain't worth paying over £4k, that's just madness.

dimbo61

Hi porky22,
read carefully what happens to your mortgage at the end of the 2 year fix.
You have a very good rate so if allowed overpay any spare money as you are not likely to get a better rate on any savings. GOOD LUCK