2008 / 2009 interest rate drop!

OMARNB

Hi, been a long time lurker in these forums but this is my first post so please be gentle!

I got my first mortgage in Feb 2009 at a young age after having support from a broker in Nov 2008. This was just as the Credit Crunch hit and mortgages with a 10 percent deposit were pretty few and far between.

Anyway, we managed to obtain one at 6.99 % which seems huge now but for context, the BOE rate at the time was 4.5%. I actually fixed it for 5 yrs too! :eek:

The BOE then took the unprecedented decision to slash rates which actually cut to 1% 5 days before the mortgage started.

Looking at my mortgage statements today, I was wondering, would my broker or mortgage company had a duty to revise my rates in lieu of these changes as the mortgage itself had not actually begun.

In hindsight and now being a little older and finance savvy, perhaps I should have pulled out of the deal at the time but just wondered if any experts out there think I may have a case to reclaim the different in interest paid?

Can anyone offer any advice or guidance?

Thanks in anticipation,

O

dunstonh

I was wondering, would my broker or mortgage company had a duty to revise my rates in lieu of these changes as the mortgage itself had not actually begun.

No. You entered into a contract to give you certainty of payment for 5 years. Mortgage advice is transactional. You dont pay for ongoing servicing.

Can anyone offer any advice or guidance?

Get on with your life and stop wondering. The rates could have gone up. Indeed, prior to the credit crunch, interest rates were expected to rise. Fixed rate mortgages are not about getting the best rate. They are about giving you certainty of what the payment is.

OMARNB

Thanks for the comments. It only sparked my interest today as I was filing away my annual mortgage statement. Appreciate your advice.