About to exchange contracts can I change to a fixed rate ?

Babiesmummy_2

We are in the process of exchanging contracts hopefully on Friday (just signed everything to send back to solicitor) and we will be on a mortgage with Northern Rock 2yr tracker 2.60% payable. Would it possible to try and switch over to a fixed rate product before completion (23rdJune). I guess I would have to forfeit my reservation fee and pay another but not sure if it is possible or not.

By the sounds of it, it looks like the rates will probably go up and don't want to end up paying more if I can fix it now.

Any help would be appreciated.

TIA

opinions4u

Babiesmummy wrote: »

Would it possible to try and switch over to a fixed rate product before completion (23rdJune).

Yes. Speak to your mortgage adviser.

(Out of interest, why did you agree to a tracker orignially? The reasons may still be sound).

I guess I would have to forfeit my reservation fee and pay another

Almost certainly.

By the sounds of it, it looks like the rates will probably go up and don't want to end up paying more if I can fix it now.

A fix today will almost certainly be more expensive than a tracker today. So you will probably pay more from day one.

Only time will tell if a fix is better than a tracker, but most "experts" seem to think that BofE rates will only rise by 2% over the next couple of years.

Experts can, of course, be wrong!

Babiesmummy_2

We have always had a fixed rate and I suppose I am just getting a bit twitchy with all the reports of rates going up.

We have decided to stay with the tracker and put away the difference between the tracker rate and what the fixed rate would have been, so we have some additional funds if the rates do go up and if we still have some money in the pot at the end of the year we will pay it towards the mortgage.