Bradford & bingley fixed mortgage at 6.29%

Kimmyj1980

We took out a b&b mortgage in may 2007 and it was a fixed rate mortgage at 6.29% for 10 years so until 2017, at the time this was a good deal as interest rates were over 7% but of course this is now no longer the case and we are desperate to do something about this. We do not have any equity in our house but not in negative equity but we just want to change the mortgage not borrow any more. Is there anything we can do to get out of this mortgage?

shortchanged_2

Check your contract terms but I imagine there will be a hefty exit fee probably around 3-5% of the mortgage balance, possibly more.
However with your lack of equity it is unlikely you will have any other mortgage products available to you.
Can you overpay at all? This is probably your only real way forward in order to get some equity in your property.

harvey115

I think at first you may call your lender and explain the situation and ask if there are any deals available to you. Also make sure to ask for any redemption charges that you may have to pay if you chose the recommended product(s).

They may just say that they cannot provide you any other deal due to your equity in the property. Also if no equity in the property, other lenders will also not be able to provide anything to you.

Kimmyj1980

Thanks for the quick responses! they are waiving the early repayment charges but have said we are basically stuck with it till it ends in 2017. We are having the house valued soon so i guess can just hope for a good value!

Thrugelmir

Overpay the mortgage to reduce the balance owed.

You'll at least save a considerable of interest that way.

Is your mortgage currently interest only?