Switch from Fixed to variable. Fee?

littlebadger

I fixed my mortgage for ten years in 2007 at 6.19%.
Would there be a fee to just revert back to the variable rate?

I see there is a fee for early re-payment. But I don't want to re-pay just opt out of my fixed rate.

I'm with the Halifax.

g_attrill

I doubt you can get out of it without paying the early repayment charge, a fixed rate is a gamble against rates going up and the charge is there to prevent people switching away to lower rates. If you have enough deposit it's possible that a tracker might be cheaper even after the ERC has been paid, how much would it be?

Thrugelmir

littlebadger wrote: »

Would there be a fee to just revert back to the variable rate?

The answer is most likely yes. You need to read your mortgage paperwork to see what it is.

Worth checking to see if can you make overpayments to reduce the balance. While you consider your options.

beecher2

You'd have to pay an ERC, and I may be wrong but I didn't think Halifax allowed customers to move to the SVR. I'd phone up and double check that with them.

Yorkie1

I have frequently read on here that if you choose to redeem a mortgage during its tied in period, the lender won't let you go onto their own SVR but make you go to another lender. Don't assume you will be allowed by Halifax to drop onto their SVR after paying the redemption fee.

Edit: beecher2 got there first!

R_P_W

i am in the middle of a 5 year fix and if i want to either re-mortgage or pay it back early i have to pay a fee which is 3% of the balance outstanding.

10 year fix @6.19% - ouch

dimbo61

So what you need to do is post details of Early repayment charges!
Loan outstanding and value of existing property !
existing LTV
It might be worth changing lenders and paying the ERC if you have a good LTV and can get a better deal with another lender.
There are some 5 year fixes at 2.99% but the fee is £1500