Mortgage transfer

francohoops

I have a 5 year fixed deal with Virgin. We are 2 years into the deal which is 3.79%. I have seen on their website a 5 year deal for 2.99%. Is it possible to switch deals with the same provider - ie. get a lower rate for an extended period? I assume they'll be a cost, but was wondering whether we'll be hit with a redemption penalty or just the new product fee.

I will call them next week to confirm - but just wanted to see if this is possible

Thanks
F

nobodysdriving

I would be ready to bet you have to pay the early redemption charges

dimbo61

The deal you are looking at has a 5% Early repayment charge!
Now I am willing to bet a £1 that the 5 year deal you have now also has a 5% ERC to pay if you repay the mortgage early.
You can overpay by 10% of the outstanding balance each year so if you have a spare £995 ( fee for new deal) overpay the mortgage!!

nobodysdriving

dimbo61 wrote: »

Now I am willing to bet a £1 that the 5 year deal you have now also has a 5% ERC to pay if you repay the mortgage early.

same here....I can only bet a £1 too as I need to save to pay my mortgage

kingstreet

I can't find any information about existing customers not moving home. The 2.99% is for remortgages, which is new borrowers to the lender.

I suspect the customer retention product will be no better than what you have and certainly not worth paying an early redemption penalty, which will apply.