Fixed rate mortgage - can I re-negotiate

rovers808

I'm not sure if there is a precedent for this, or if its even worth asking, but here's the situation.

I changed to a fixed rate deal at the end of last year, after the end of my previous deal with Northern Rock expired and I was encouraged to move lenders. This rate was higher than it had been (6.5%) but seemed the best I could get at the time. A few months later the base rate dropped like a stone and now I look enviously as the SVR I would have been on had I just stuck.

So, here's my question - I have 18 months to go on my fixed deal at 6.54%. Is it possible I can renegotiate this, possibly to fix it to a longer term - but at a lower rate (so at 5% to stay with them for a further year on top of my existing 2 years for example).

In the absence of that option, do I have anywhere to go to with a 90% LTV and a 2.5k early repayment charge?

beecher

You would have to pay the Early Repayment Charge to get out of your existing deal and then chose another. Your lender won't negotiate on that - looking at it from their point of view, why would they?

With an LTV of 90% I don't think the deals you'd be offered would be significantly lower than what you're on to make it worthwhile, and you'd have to pay an extra arrangement fee too.