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Mortgage help
Moneygrabber89
Posts: 197 Forumite
Hi,
Our current mortgage rate is fixed for 2 years 2.75% with 1 year remaining. However I know there are some 5 year fixed rates currently at 1.78%. I currently pay £504 a month I was wondering if this will bring charge down much and it is for a longer fixed term.
I understand there will be a penalty for leaving early however is it possible the new mortgage company would pay this for the business?
Our current mortgage rate is fixed for 2 years 2.75% with 1 year remaining. However I know there are some 5 year fixed rates currently at 1.78%. I currently pay £504 a month I was wondering if this will bring charge down much and it is for a longer fixed term.
I understand there will be a penalty for leaving early however is it possible the new mortgage company would pay this for the business?
0
Comments
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A new mortgage lenders is not going to pay for your business.
Going off your figures, they are charging 1.78%. Lets assume they pay 0.5% for the money. If they then pay your 1% ERC, in year one they are making 0.28% and thats before you take into account the free valuation and legals they tend to offer and the cost for staff, rent etc etc.
You are free to switch, but you would have to pay the ERC.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
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