Fixed Rates

pollyanna24

If you have a fixed rate mortgage, but are worried about what the rates are going to be at the end of it (ours is April 2008), is there a way to get out of the current fixed rate and refix it with the same company at the current rate?

I know this sounds daft, but I'm just testing the water.

We have a fixed rate mortgage with Nationwide, but are worried that interest rates will be terribly high when the fixed rate is up. We know that the current rate is higher than what we are on, but just wondered if there was a way to minimise the damage as such and refix our mortgage for a lot longer than the 2 years we originally fixed at.

wardlaw

I doubt if the lender will have the same rates available, now, when you took out the original mortage

IF you want to switch to another rate with your existing lender or move to another ,there will probably be a redemption penalty that you will need to pay

My advise would be to stay where you are, as who knows the rates may fall by the time your fixed rate is up.

John

luckyfool

Nationwide Mortgages offer a droplock facility on their Trackers, i.e. if you were tied into a variable rate they would allow you to switch to a fixed rate without a penalty. Unfortunately this would not be much help to you. All you can do is look at setting up a remortgage for a lender that would allow you to delay completion until next year, or pay the penalty to get out and switch now.

Gorgeous_George

I'd wait till next year too but it may be worth having a chat with a mortgage adviser at Nationwide. If nothing else, it shows you are acting responsibly.

I think 2-year deals should be illegal under some sort of mis-selling legislation when the start-up/exit charges and legal fees etc are taken into account. For a mortgage that is likely to be repaid over 20/25/30 years a 2-year fix is worthless. They may have had more value when the Tories controlled bank base rates.

Hopefully, MSEers reading this thread will reconsider their options before entering into short term mortgage deals which only serve to generate income for mortgage advisers and surveyors.



GG