Fixed Rate

hmd1987

Afternoon Everybody...

I bought my first home December 2011 and entered into a 5 year fixed rate with Cumberland Building Society of around 4.3% (I have all the paperwork at home). Seen as I have fixed for 5 years, does that mean I can't switch to anybody?

I've seen the rates have dropped alot and even at Cumberland they are around 2.5% for a 2 year fixed...Is it worth me going into to speak to a Mortgage Advisor and try to switch or do I have to wait till my 5 years is up? (approx 20months)

kingstreet

If you pay them the agreed penalty amount (see section 10 or 11 of your key facts illustration) you should be able to remortgage to a new lender to repay the old mortgage.

hmd1987

what about if I switched to a new agreement with Cumberland? Is it worth doing? I have 1 year old twins, so any money saved would be good, or depending on how much it is I could potentially start to overpay maybe

kingstreet

Same applies. Pay any early repayment penalty and get a new deal from your existing lender (if it offers any) or a new one.

hmd1987

ok thanks - Might pop in this weekend then and see what options are available

graduate

If you are going to pay any early repayment changes why not look at the whole of the market rather than just go with the same lender?

dimbo61

You are in a very different mortgage environment today compared to when you took your mortgage out.
Without sitting down with you and going through a full fact find and knowing all the details we are only guessing.
You may find your existing lender will not lend you the money to pay the ERC and get a better deal.
You need to look at the whole market and find a deal which suits your needs