Fixed Rate Mortgage wrongly advised

Zogster_2

Please could someone assist us what we can do. We were told by a Financial Advisor to re-mortgage our home when our fixed rate mortgage ran out in 2008 and we were told to change mortgage for a fixed rate for 5 years. Our fixed rate does not run out until 2013 and we have been paying a mortgage at a high interest rate ever since. The interest rates dropped to the rates they are now one month after we were told to take this mortgage out.

When we re-mortgaged we were advised to put a loan onto the mortgage and then were told that we would have to take the mortgage out over 40 years, thats past our retierment age. He told us that we would get a letter from the mortgage company telling us that we will be going past retirement but to just ignore it as that is normal procedure and nothing to worry about. We were never shown any figures to pay the mortgage over 25 years or even 30 years we were told that this was the only way that we would be able to get the mortgage. The Financial Advisor filled all of the paperwork in and brought it round to our house and told us that we had to sign it there and then else we would struggle financialy.

I have since called the Mortgage company and been advised that if we had taken the mortgage over 30 years we would only have had to pay an extra £40 a month, which we could easily have afforded, we have been paying unnecessary interest for 3 years and can not get out of the mortgage due to the large exit fees from the fixed rate, we are well and truly stuck and dont know what we can do.

Any help would be greatly appreciated, we could really do with some advise on who to contact about this and what we can do if anything.

Thank you for any assistance in advance.

Radiantsoul

Do the mortgage company allow overpayments? Most allow some ans so it might be worth asking.

Your losses are presumably the quite small as all you are really losing is the difference on the £40 per month in the mortgage based what you could get in savings over the five years.

You would have paid an extra £2400, so you should perhaps try and save that if you can't overpay and use it to repay a lump sum from your mortgage when the fixed term ends.

_Andy_

OK two things here

1) You are frustrated because you're on a fixed rate but rates have gone down since. Being blunt (and not meant rudely), tough. Doesn't mean it was bad advice. You wanted a fixed rate at the time and you got that. Nothing you can do about that I'm afraid.

2) Re the term - there would be no reason for the advisor to suggest this unless it was relevant to the affordability criteria of the lender. (I.e the commission wouldn't be more for a longer term).
As mentioned above, you can overpay (check with the lender how much).