Incorrectly remortgage with a new provider

aliveli

I had a Fixed Rate mortgage with Barclays and the fixed term ended at the end of November. Without checking what the new interest rate on the mortgage will be after the fixed term ended - I agreed a 2 year fixed with First Direct. On the 2nd of December my mortgage moved to First Direct at 2.99 fixed for 2 years. After the move I found out that after the fixed term Barclays moved my mortgage to Bank of England rate + 0.95, which works out 1.45%.
Ok - I made a mistake and have already paid £1.5k to First Direct. I am happy to loose this - I wanted to find out the following:
1. Is there any way I could convince Barclays to take me back at the original rate
2. Is there a way for me to cancel my First Direct mortgage without a penalty
I made big mistake - and am very angry with myself :mad:. Is there any way I can undo what I have done without incurring any penalty.

opinions4u

The ship has sailed.

Absolutely no chance on either question.

Barclays will be losing money if they take you back.

First Direct will lose money if they waive their penalty.

There's nothing in it for them.

It only becomes a mistake if BofE doesn't rise much in the next couple of years. So learn the lesson to research a bit more next time round, but don't lose sleep over it.

wildbri

just remember.... we were paying 15% on our mortgage with the Skipton in the 70s and 80s
regards bri

dimbo61

I might be wrong but I am guessing that your new mortgage payment is a lot cheaper than your old fixed rate deal ?
So you are saving money and I hope you either overpay the mortgage or fill your ISA, s allowance each year ( you should be able to get 3.5% Tax free )
It looks like rates BOE may well stay low for some time but who knows !!

MarkyMarkD

opinions4u wrote: »

The ship has sailed.

Absolutely no chance on either question.

Barclays will be losing money if they take you back.

First Direct will lose money if they waive their penalty.

There's nothing in it for them.

It only becomes a mistake if BofE doesn't rise much in the next couple of years. So learn the lesson to research a bit more next time round, but don't lose sleep over it.

I agre with all your comments, apart from the last paragraph.

Giving up a lifetime BBR+0.95% tracker is definitely a mistake. Not reading your original mortgage agreement and remortgaging is a mistake of the largest possible proportions!

Once the new fixed rate ends, I bet you £1m that it doesn't revert to lifetime BBR+0.95%. So you may be losing out for the remaining life of your mortgage, rather than just winning or losing a bit over the next 2 years.

Joe_Bloggs

There is some security in having a good fixed rate, even if it costs a considerable fee. Especially if the mortgage is taking up a big part of expenditure. Who knows what will happen after the next general election. There could be a hung parliament. There could be a run on the pound.

I invite the original poster to find the rate that their new mortgage will revert to, once the fixed rate ends. This should be a crucial point in making the mortgage decision. Quite often this rate is subject to variables that can not be predicted, as it is far into the future.
J_B.

MarkyMarkD

I forgot to say in my first post, that this mistake would not have happened if the decision to switch had been under advice. Or if it did happen, at least there would be some means of recourse.

MMD (not a mortgage broker!)

sheslookinhot

MarkyMarkD wrote: »

I agre with all your comments, apart from the last paragraph.

Giving up a lifetime BBR+0.95% tracker is definitely a mistake. Not reading your original mortgage agreement and remortgaging is a mistake of the largest possible proportions!

Once the new fixed rate ends, I bet you £1m that it doesn't revert to lifetime BBR+0.95%. So you may be losing out for the remaining life of your mortgage, rather than just winning or losing a bit over the next 2 years.

Where does the OP mention he is giving up a lifetime BBR+0.95% tracker ?

pwllbwdr

aliveli wrote: »

After the move I found out that after the fixed term Barclays moved my mortgage to Bank of England rate + 0.95, which works out 1.45%.

Which I read as meaning that if they hadn't remortgaged they would have gone on to that tracker SVR.

aliveli

thank you for your feedback:mad:

VIGILANT22

I hope the lesson is here...take advice....if your electrics are broke you consult the electrician...if you require mortgage advice.....