Move to better fixed rate

mr2nut

Hi,

Not sure if this will be worth it for us but if you have a minute to advise it would be greatly appreciated..

We are struggling badly with our mortgage, but love it here and have pets so can't move back home. We are currently in the following situation..

House bought for £123,995
Left on mortgage to pay £120,990
5 year fixed term at a ridiculous 6.79%
Over 40 years, with 37years 10 months remaining
£737.84 per month


We believe we were mis-sold this rate as she said that it is definately the best route to take and will save us money when all the prises go up...but they didn't, they fell massively as you will know.

We both have very stable jobs and haven't missed a beat when it comes to the mortgage, we are honest hard working people that simply want to be paying 'the going rate' so to speak.

Are there any companies out there that would be willing to take us on at a much better rate, or do I stand a chance taking this up with my current provider to bring the rate down, in order for our loyalty down the line?

As it stands, I WILL leave them at the end of this 5 years as this rate is very bad, but if they were to show some kind of willing and bring down our rate, I would quite happily tie into another few years and stay with them for many more providing that what they offer each renewal is fairer.


I would be very grateful for any tips on this or if you perhaps work for a company that looks at each case on an individual basis that would appreciate the stable business, feel free to contact me.

_Andy_

At that LTV you can't change lenders.
Your current lender won't let you out without paying ERCs.
I don't see that you were 'mis-sold' at all.

Cannon_Fodder

The situation hasn't changed since you posted it over a year ago;
https://forums.moneysavingexpert.com/discussion/1502301

If you are truly struggling, head over to the debt-free wannabee forum, and learn how to economise so you can cut expenditure and build some equity up.

opinions4u

mr2nut wrote: »

We believe we were mis-sold this rate as she said that it is definately the best route to take and will save us money when all the prises go up...but they didn't, they fell massively as you will know.

No mortgage adviser is capable of knowing what will happen to mortgage rates.

If you have expressed a concern about affordability if rates went up, then a good mortgage adviser would be acting reasonably in considering recommending a longer term fixed rate.

I don't think you'd find any economists who predicted BofE rates dropping to 0.5%.

If you'd been sold a variable rate (after expressing concern about affordiability if rates increased) and rates had then risen, there may be some cause to ask the question "was I sold the wrong mortgage?".

We both have very stable jobs and haven't missed a beat when it comes to the mortgage, we are honest hard working people that simply want to be paying 'the going rate' so to speak.

This linky gives you the going rate for an 85% LTV 5 year fixed rate mortgage with a major lender. 6.59%.

Are there any companies out there that would be willing to take us on at a much better rate, or do I stand a chance taking this up with my current provider to bring the rate down, in order for our loyalty down the line?

Loyalty? You've signed up for a deal but don't want to stick to it. Your existing lender has paid to raise the funds at that price, so they will make a significant loss if they agreed to change. In other words, they won't.

Based on what you've posted, you are stuck with your rate and your lender.