Mortgage Early Redemption Help Please ??

atm75

Good evening all, this is my first post so please be gentle :rotfl:. I am looking for some help/advise before i contact my mortgage lender looking to change things about.

I shall tell you what i'm thinking and i hope that someone has possibly done the same and can advise, sorry if i go a bit wayward !!

I have a Halifax mortgage of approx £ 145k currently on a fixed rate until August 2011 @ 6.59%. This mortgage has an early repayment charge of £2880.00 up until August 2011.

Realisticly i need to stay with the Halifax as i've not done my credit rating much good recently as i missed a credit card payment ( 1 month late ) shows on my credit expert report, other than that its only really that i'm using nearly all my available credit ( approx 80% ) so i don`t want to have to go through a mortgage application at the moment.

What i was wondering is that if i contacted the Halifax and asked them to end my fixed rate deal and put me on the standard variable rate currently 3.5% and pay the early repayment charge , would they do that do you think ??? It would mean that my mortgage payment would drop from nearly £800 a month to just over £400 almost cutting it in half !! meaning i would be better off overall after paying the penalty.

I just don`t want to get my hopes up as i'm not too sure that they would entertain me

Any help is greatly appreceiated :T

VT82

Are you on interest only to expect your payment to half if your interest rate halves?

I think the Early REPAYMENT Charge is only applicable if you REPAY, not just because you ask to switch. Even mortgaging onto the SVR with someone now usually means an application fee unless you have a low loan-to-value mortgage.

Even if somehow you do switch onto their SVR, remember that the rate can go up, and not only because of an increase in the Bank base rate, but whenever they see fit.

atm75

VT82 wrote: »

Are you on interest only to expect your payment to half if your interest rate halves?

I think the Early REPAYMENT Charge is only applicable if you REPAY, not just because you ask to switch. Even mortgaging onto the SVR with someone now usually means an application fee unless you have a low loan-to-value mortgage.

Even if somehow you do switch onto their SVR, remember that the rate can go up, and not only because of an increase in the Bank base rate, but whenever they see fit.

Ah, thanks for that, thats what i haven't factored in, thought it was too good to be true, i'm on a repayment mortgage so i wouldn't save anything like what i had first thought i was never the best with basic maths

Thanks :rotfl:

dimbo61

Halifax will not let you come off your fix and go onto there SVR ( they would be losing money!)