Fixed mortgages

doddsy1

Unfortunately I got a fixed deal last Oct, just before the interest rates when down. My fixed mortgage is around 6%. Is there anyway I can approach my current lender to reduce my interest rate to the rates they are offereing new customers? Any advice would be great!

beecher

Can't see it happening unless you pay the Early Repayment charge, and even then some lenders don't allow it. Have a look at your mortgage offer and see how much you'd have to pay to get out of the deal, and then calculate how much you'd save - depending on your LTV you might be shocked by how little even before taking the ERC into account.

doddsy1

Thanks for your advice. I have looked into swithcing but it isnt worth it with the ERCs. I was hoping there maybe some other solution to help reduce the interest rate. Thanks anyway and have a great day!

benjo

I doubt you would get any joy asking them to reduce your fixed interest rate in light on historically low interest rates - similarly I doubt you would accept them raising your fixed rate if interest rates rise to 15% - thats the risk/advantage of fixing for a set period and the name of the deal sort of gives a clue - it is 'fixed' for the period unless you buy your way out.

Wouldnt cost you a penny to ask them tho - goodluck.