LifeTime Mortgage - interest rate cut?

loughlini

I have recently completed on an L&G Lifetime mortgage. The terms are that the interest rate is 'fixed for life' which I understand. However the bank rate has just dropped to 0.1%. Is it worth asking L&G if they can reduce my mortgage interest? Any thoughts?

Thrugelmir

If that's the product you opted for those are the terms. You would need to reapply and redeem your current product to obtain a different rate. . 

dunstonh

The terms are that the interest rate is 'fixed for life' which I understand. However the bank rate has just dropped to 0.1%. Is it worth asking L&G if they can reduce my mortgage interest? Any thoughts?

If you bought a fixed rate then it will be fixed.   They may allow you to move to another product if you pay the exit charges on this one and the entry charges on the new one.

The whole point of a fix is that it remains the same irrespective of what happens to interest rates.

Edi81

If rates had increased by 65bp would you be offering to pay more?
you bought a fixed rate product so you are left with redeeming it and taking out a new cheaper product or leaving as is.