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Stuck in a high fixed rate
logan77
Posts: 23 Forumite
I'm currently in a 5yr fixed rate til October 2018 at 4.39% with Coventry building society. I went through a telephone interview process with them where I could go to a cheaper product saving me £150 month but my exit fees are £4200 making not viable 
.
Can anything be done about this? Still with the same mortgage company but different product. The advisor couldn't help me explains that's what I agreed to when I took up the fixed rate. Which I understand, will a letter to head office help?
.Can anything be done about this? Still with the same mortgage company but different product. The advisor couldn't help me explains that's what I agreed to when I took up the fixed rate. Which I understand, will a letter to head office help?
I am a Mortgage and Life Insurance Advisor.
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
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Comments
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What is your letter to head office going to say that you didn't say to the guy on the phone.
I'm afraid, please let me pay less isn't going to wash with them.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You say it's not viable, but if you have the £4200 available to pay the exit fee, then from what you say your return is 3 and a half years of saving £150pm which is £6300. So although it's painful up-front, you are still saving.
The early redemption penalties on some mortgages reduce as you get closer to the end of the fixed term, so in any case it may be worth revisiting this calculation in a year's time, as the balance may be different.0 -
need more details
max overpayment without penalty
outstanding ballance
current rate (4.49%)
current full term and payment
penalty(and if it changes over time)
new rate
new tie in
fees
Can you add the fee to the loan? if not do you have the cash?0 -
Sounds like you took a 5 year fixed rate the year before they all dropped by 1%.
That is the risk you take with fixed rates, particularly medium term ones.
How long is the rate you are considering moving to?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
This is not a dig at the OP, but 20 years ago did any of us ever imagine that we would ever see a a post titled
'Stuck in a high fixed rate' about a 5year fix at 4.49!!???
Its a funny old world.£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
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I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
One persons comedy is anthers tragedy!
I didn't mean to make light of the OP's position it was just something that struck me when i read it.£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
!0 -
Hey no offence taken
Basically I made a bad call and fixed it before things dropped, just thought if they're was an escape route out. Live and learn.I am a Mortgage and Life Insurance Advisor.
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice0 -
You didn't make a bad call.
How would you know what direction future fixed rates would have gone when you picked yours?
You wanted security of payments for a set period, you got that, it was a good call.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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