Can I end my frixed rate early and go onto their variable rate?

kindofagilr

I havent got the exact calclations in front of me

But we currently pay £618.51 mortgage on a 6.29% mortgage with C&G till April 2014 (was a 5 year fixed rate thing)

After the 5 years it was to go onto their variable rate which roughly was about £450 a month

There is a early repayment charge on this deal (dont know the exact amounts off the top of my head so I know I would need that to see if it was 'worth' leaving deal early)

I just wondered if it was possible to end the fixed rate but to stay with C&G on their variable rate that they offered in our mortage deal

I hope that makes sense lol :rotfl::rotfl:

JC_Derby

im sure it will be....but they will still charge you the termination fee.
You need to see what the fee is and how long you have left on the current rate to work out whether its value for money.

shortchanged_2

I would imagine your ERC would be pretty hefty as you still have a long way to go on this deal, I would guess without looking at your T&C's around 3% of the balance or possibly more.

To answer your other question, it is doubtful if they would end your fixed rate and let you go onto their SVR because they would lose money by doing this.

redlady_1

I have been looking into doing this with Halifax. I have no problems except they want the redemption penalty up front so be warned.

kindofagilr

Thanks, I will have a look at the paperwork and see what the fee is, we have just over 3 years left on the current rate

If the 3% is correct I worked out the ERC would be £2970 (mortgage left is 99k)
And if the difference in pmts (£618 to £450 ish) is £168 x the months left 38 = £6384 so would be worth doing?

That is if they would let me do it

ETA I re-read the post, I thought someone had posted to say the ERC would be 3% but I see now they say if, so I will have to look at paperwork and see what the charge actually is before looking into whether C&G would let me do this

dimbo61

C&G will not let you go onto the SVR if you want to come out of the fix! Its called a follow on rate whcih I think is BOE base rate plus 2%.
This is hurting alot of the big lenders and they wont let you leave one deal to get onto a better one.
you need to read all the paperwork carefully and see if its worth "ditch the fix and switch" as Martin has a calculator on here somewhere.
HSBC/FD have some very good trackers if you have the right LTV and credit score + income

[Deleted User]

kindofagilr wrote: »

If the 3% is correct I worked out the ERC would be £2970 (mortgage left is 99k)
And if the difference in pmts (£618 to £450 ish) is £168 x the months left 38 = £6384 so would be worth doing?

If you do move to their variable, remember it is variable, and will only be going up. So assuming it move upwards over the next 38 months, your monthly 'savings' will diminish. And could conceivably move about what you are are currently fixed on, so you would start losing money towards the end.

So you'll need to fact in a more pessimistic scenario. It's pretty certain you would not save as much as £168 x 38.