5.99 trapped until 2017

HNW

I have a mortgage totalling £127K
In 2013 I ported an existing rate of .69 above base rate on £38K of this.
The other parts are £9K on a 4.99 fixed rate until July 2017 and £79K on 5.99 (ouch) fixed until July 2017.
I called Woolwich and they said the only part I can change is the 0.69! I bet! Obviously I won't be doing this.


I have NO idea why I have a fixed rate for this amount? I always go variable, historically. I was, at the time quite maxed out on LTV and owned another property at the same time. so, perhaps I thought safety first. Or, might I have been missold a terrible product? I suspect the latter as I never go fixed.


The early redemption is £2,394.35 (which I do not have)
I calculated (a website that does this did) a rate of somewhere between 4.86 and 4.36 would be needed to compensate the charge.


What should I do? I'm so shocked at the 5.99 rate. I had no clue I was tied in (as I've been on mortgage comparison sites all morning before going to current lender)


Any advice?


Thanks

Thrugelmir

If you can afford to and are allowed to , overpay this part of your mortgage.

somethingcorporate

Can you add the ERC on to the mortgage? if you can get a rate low enough it would more than cover it.

It's a bit premature throwing words like missold around - you need to speak to the lender and understand when/how you managed to tie yourself in - they would have needed something signing and you would have got a KFI.

As you know fixed offers security and no-one knew what rates were going to do (otherwise everyone would be on a tracker).

HNW

Overpayment per month might be a possible compromise. I'd feel happier with that. The payment is £506 though so I wouldn't be able to afford a massive increase on this (the total monthly payment is £695)


I am not banding the word missold about in an official way. I have never selected a fixed rate before and just can't see why I would have. I have made an appointment to speak to them in branch next Tuesday. I will look at what they offer (as even the person on the phone baulked at the rate 'that's higher than SVR isn't it' in a 'gosh' tone)

I wouldn't have spent hours researching deals if I had known the great portion of my mortgage was fixed until 2017

amnblog

How did you end up with the fixed rates? Presumably further advances?

Thrugelmir

HNW wrote: »

Overpayment per month might be a possible compromise. I'd feel happier with that. The payment is £506 though so I wouldn't be able to afford a massive increase on this (the total monthly payment is £695)


I am not banding the word missold about in an official way. I have never selected a fixed rate before and just can't see why I would have. I have made an appointment to speak to them in branch next Tuesday. I will look at what they offer (as even the person on the phone baulked at the rate 'that's higher than SVR isn't it' in a 'gosh' tone)

I wouldn't have spent hours researching deals if I had known the great portion of my mortgage was fixed until 2017

Hindsight is wonderful. No one foresaw what would happen.

jjlandlord

HNW wrote: »

Or, might I have been missold a terrible product? I suspect the latter as I never go fixed.

'missold' is not a synonym for "I could be bothered reading the mortgage offer".

HNW

This is what I don't understand. I got all three parts at the same time. I felt I should stay with Woolwich because in July 2013 the 0.69 rate was so good no one could come near it. I ported it to the new property The other two components have me baffled.
I can only go back to my financial position at the time, owning two properties (albeit accidentally!) I owned a flat since 2000 and struggled to sell it with less than 70yrs on the lease and couldn't afford to extend it (it also got all tricky with the leaseholder)


This meant that I needed a mortgage on my new property, the one this post is about and to get a new mortgage on the flat. That was a narrow field of options because of owning two properties. I ended up going to a broker (who was fantastic) and Kent Reliance. I sold the flat last month.
Selling the flat led me to look at what rates I could get now don't own two properties.


This still leaves me totally baffled by the news of the 5.99 rate I'm stuck with. I remember the branch I went to for the mortgage but not the staff member. I, obviously, signed something but just feel that the 'deal' is so unlike my usual banking choices.

HNW

jjlandlord. Is that meant to be charming or helpful?


Also is it meant to be 'couldn't be bothered'?


Genuine advice from genuine mortgage brokers most welcome.
I shall bother to read all of it

HNW

Regarding no one foresaw what would happen, I have always taken the educated risk/gamble of variable.
Always repayment and always variable.


I can accept 'what's done is done' but what can I do now please?
Newbie, play nicely!

getmore4less

Thrugelmir wrote: »

Hindsight is wonderful. No one foresaw what would happen.

No hindsight this was 2013 base was already 0.5%.