Getting out of a fixed rate onto variable rate

Northants_Simon

Hello,

I'm two years into a five year fixed rate mortgage with the Halifax. The interest rate is 6.1% and is starting to hurt as my business isn't doing too well at the moment with all the doom and gloom in the economy.

The early repayment fee is something silly, like £8000. Is it at all possible to add this to my loan (mortgage is £160k on a £200k house), and also if I pay the fee, can I switch to the standard variable rate or would I be forced to take another fixed rate mortgage?

I'm a bit annoyed as I took the five year fixed rate on the advice of a financial advisor, and am now paying over £1000 a month for my mortgage when many people are paying just a couple of hundred in interest.

iamana1ias

That's the risk you take! What would you be saying if they advised a variable rate that then went up to 15% while others fixed at 5%?

_Andy_

Are you sure you want to increase your debt by £8k just for some short term saving on your monthly outgoings?
At the moment you have the medium term security that you originally wanted. Exiting this, paying £8k for the privilege, then being frustrated when rates rise again doesn't seem a great idea.