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Fixed rates
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POPPY19_2
Posts: 1 Newbie
I signed up for a 5 year fixed rate mortgage in February 2014 at 3.190% on the advice that mortgages would definitely be going up. I am now struggling to pay this and would like to revert to the normal base rate. Can I get out of this contract?
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Comments
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Read the paperwork you signed. Will probably have to pay an early repayment charge.
If you're struggling at 3.19% though, exposing yourself to a variable base rate is probably not wise as rates are more likely than not to rise over the next year or two.0 -
The base rate... as in 0.5%?
You will not get a mortgage at that rate or anywhere close, thats the rate the Bank of england pays, lenders have to make their profit.
Also as most lenders now assess affordability on around 7%, if your struggling to pay it at 3.2% then I would imagine your not going to get a mortgage anywhere else.
You may need to see if you can extend the term or look at selling up if you are struggling.I am a Mortgage AdviserYou 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 -
If rates had increased, how would your mortgage have become more affordable for you in the same circumstances?I signed up for a 5 year fixed rate mortgage in February 2014 at 3.190% on the advice that mortgages would definitely be going up. I am now struggling to pay this and would like to revert to the normal base rate. Can I get out of this contract?
It's fair to say rates haven't gone up yet, but when they do, your mortgage isn't going to go down...I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Assuming you mean your lenders standard variable rate rather than the base rate, I would expect the SVR to be higher than 3.19%.
If you did mean the base rate the answer is a simple no.
Whats changed since application that hes now got you struggling?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 -
Have you miss keyed your original post?
How can you have obtained a mortgage that is not affordable at 3.19%?
Have your circumstances changed?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 -
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