Crooks

bigsteve1

It really annoys me that I've been stuck on this crap 5 year fixed rate for 5 years now at over 5.6%. No that it is finished I will move onto a variable rate which was promised to be no more than 2% above the base rate, low and behold it is moving to exactly 2.5%!! :mad: Why say 'no more than' in the first place'!!! Usual crap service for a provider that continues to claim they are focused on their customers, and not shareholders, because they don't have any of the latter.

HelenDaveKids

Your on the right forum, so bigsteve1, what do you think the best way of beating them is?

If you haven't already, click on the morgage overpayment calculator...

The very best of luck!

bigsteve1

I'd love to but I don't really have it to overpay. Have been dipping into savings the last while, looking forward to now, when I hope that will come to an end with this slight reduction.

Thanks anyway for the advice.

Also, I know saving rates are bad at the moment but I would like to think I could get as good as 2.5% at least, if I did have anything left over.

HelenDaveKids

Hate to be a MFW bore, but every penny counts. Even if you only overpayed a few quid a month, it soon adds up.
Quite a few of these threads are people saving tiny bits of cash, which ultimately get bigger and bigger.
Just pop into the calculator £50 a month which is just a £10 a week...

happycamel_2

2.5% after tax isn't that easy to achieve but actually, given that you've taken on the risk of a variable rate you'd be well advised to stay as close to your old repayment amount as possible (whilst checking the maximum you can overpay) then you'll be reducing capital owed faster and exposing yourself to less risk when rates rise (not to mention saving huge amounts of interest over the whole term).

It's great that you're off your high fix but nows is definitely the time to use it to your advantage and give them less money overall.

HelenDaveKids

Yes, everytime I OP, I never change the amount going in each month.

edinburgher

2.5% is great, I'd give my left arm to get that! Currently on 5% myself, if I went onto the SVR it'd still be 4.74%!

Sorry your fixed rate sucked, I have relatives who were on 5.89% for 5 years, so I know how frustrating it seems to be locked in.

bigsteve1

Thanks all. Great advice

downsizer3

As someone who can't afford to OP much every month I'd add my MFW pennies worth and say definitely try - even just a few quid a month.
I only OP £70 but it reduces the term by a surprising amount.
Your monthly amount won't change - you're trying to reduce the term - so keep at the ususal amount - and try the calculator. You'll find you can save a lot in interest.
Give yorself a month of bliss after your >5% deal then start the OPs - promise its worth it - even if its to feel you're beating the mortgage rip-offs a wee bit.

ultrarunner

If your rate is linked to Base Rate (like mine) then do bear in in mind HappyCamels point, and make sure you keep overpaying, the rate won't be 2.5% for ever!

_Andy_

bigsteve1 wrote: »

It really annoys me that I've been stuck on this crap 5 year fixed rate for 5 years now at over 5.6%. No that it is finished I will move onto a variable rate which was promised to be no more than 2% above the base rate, low and behold it is moving to exactly 2.5%!! :mad: Why say 'no more than' in the first place'!!! Usual crap service for a provider that continues to claim they are focused on their customers, and not shareholders, because they don't have any of the latter.

I fail to see your issue.
They stated 'no more than 2% above' and as promised it's no more than 2% above. How does fulfilling their side of the contract make them 'crooks' or 'crap' exactly?