Any way out of a fixed rate mortgage...
Discussion
...without having to pay the release fee?
My current fixed rate deal doesn't expire until end of August and is fixed at 5.95% with a release fee of 3% (~£3000 as it stands). My mortgage lender's current standard variable is 4% which is substantially less! I've tried to negotiate with them but they will not move the mortgage onto another rate without me paying the fee, thus making it pointless changing. I've told them it's quite hard to make the payments at the moment (true!) but all they've said is don't default on your payments or else! Not exactly sympathetic
Any ideas folks or is struggling on until September the only option?
My current fixed rate deal doesn't expire until end of August and is fixed at 5.95% with a release fee of 3% (~£3000 as it stands). My mortgage lender's current standard variable is 4% which is substantially less! I've tried to negotiate with them but they will not move the mortgage onto another rate without me paying the fee, thus making it pointless changing. I've told them it's quite hard to make the payments at the moment (true!) but all they've said is don't default on your payments or else! Not exactly sympathetic
Any ideas folks or is struggling on until September the only option?
Moose. said:
...without having to pay the release fee?
My current fixed rate deal doesn't expire until end of August and is fixed at 5.95% with a release fee of 3% (~£3000 as it stands). My mortgage lender's current standard variable is 4% which is substantially less! I've tried to negotiate with them but they will not move the mortgage onto another rate without me paying the fee, thus making it pointless changing. I've told them it's quite hard to make the payments at the moment (true!) but all they've said is don't default on your payments or else! Not exactly sympathetic
Any ideas folks or is struggling on until September the only option?
Why is it a struggle at the moment?My current fixed rate deal doesn't expire until end of August and is fixed at 5.95% with a release fee of 3% (~£3000 as it stands). My mortgage lender's current standard variable is 4% which is substantially less! I've tried to negotiate with them but they will not move the mortgage onto another rate without me paying the fee, thus making it pointless changing. I've told them it's quite hard to make the payments at the moment (true!) but all they've said is don't default on your payments or else! Not exactly sympathetic
Any ideas folks or is struggling on until September the only option?
September isn't long to wait in the scheme of things.
I let the property out (mortgage company are aware of this) but I've not been able to let for a while now, so payments are tricky without the rental income. Not to mention I've been spending a LOT of money on training for a future career which means I have no savings any more. I should be able to keep going until then, but was just a bit annoyed at the lender's bluntness really.
Im sorry mate but you signed the paper work.. I dont see why they should have any obligation to do anything until the end of the term..
im on a fixed rate too 5 % for another 12 years.... I took the view that if it went down, i'd be mildly annoyed but if it went up I'd be fecked so went for a fixed rate... its just a form of gambling really. currently we're both loosing and the banks are winning... but I remember double digit interest rates in the not too distant past !!!
Hope you manage your way through it
G
im on a fixed rate too 5 % for another 12 years.... I took the view that if it went down, i'd be mildly annoyed but if it went up I'd be fecked so went for a fixed rate... its just a form of gambling really. currently we're both loosing and the banks are winning... but I remember double digit interest rates in the not too distant past !!!
Hope you manage your way through it
G
You entered into a deal whereby you paid a premium to protect yourself against the risk of high interest rates. If rates were 10% you'd be quids in and they'd be losing money - if they came to you and asked you to renegotiate becuase they didn't like the deal you'd rightly tell them to get stuffed too.
What you're asking is akin to going into a betting shop and asking for your money back just because you backed the wrong horse.
What you're asking is akin to going into a betting shop and asking for your money back just because you backed the wrong horse.
Moose. said:
I let the property out (mortgage company are aware of this) but I've not been able to let for a while now, so payments are tricky without the rental income. Not to mention I've been spending a LOT of money on training for a future career which means I have no savings any more. I should be able to keep going until then, but was just a bit annoyed at the lender's bluntness really.
Who is the lender?Graham said:
Im sorry mate but you signed the paper work.. I dont see why they should have any obligation to do anything until the end of the term..
im on a fixed rate too 5 % for another 12 years.... I took the view that if it went down, i'd be mildly annoyed but if it went up I'd be fecked so went for a fixed rate... its just a form of gambling really. currently we're both loosing and the banks are winning... but I remember double digit interest rates in the not too distant past !!!
Hope you manage your way through it
G
+1im on a fixed rate too 5 % for another 12 years.... I took the view that if it went down, i'd be mildly annoyed but if it went up I'd be fecked so went for a fixed rate... its just a form of gambling really. currently we're both loosing and the banks are winning... but I remember double digit interest rates in the not too distant past !!!
Hope you manage your way through it
G
I am in for another 8 years (I fixed at 4.99%). I had 2 years or so with a better than average rate, but hey ho.
By the time you pay the arrangement fees etc etc every 2 years to remortgage, it becomes expensive.
Seight_Returns said:
You entered into a deal whereby you paid a premium to protect yourself against the risk of high interest rates. If rates were 10% you'd be quids in and they'd be losing money - if they came to you and asked you to renegotiate becuase they didn't like the deal you'd rightly tell them to get stuffed too.
What you're asking is akin to going into a betting shop and asking for your money back just because you backed the wrong horse.
Wholeheartedly concur.What you're asking is akin to going into a betting shop and asking for your money back just because you backed the wrong horse.
OP - suck it up, buttercup! Can you not drop the rent asking price to let it out quicker?
I'm in a 5 yr fixed at present that ends in June next year at 4.95%. Whilst I could be paying a lot less now I know I've been getting the benefit for at least the first half so it works both ways. You wanted the benefit of a fixed rate at the start then unfortunately this is the risk you take.
I'm fixed into all my mortgages with ok rates that were once very good rates (though one ends in September, so that could be interesting). I console myself about the fact that I could be paying less, with the fact that I know exactly how much will go out every month, if rates go skyward again I'm insured against unpleasantness, and actually, remortgaging every couple of years gets quite expensive - and makes the quoted rates a bit 'false'.
It's all a bit of a gamble, but then so is life.
It's all a bit of a gamble, but then so is life.
Moose. said:
I let the property out (mortgage company are aware of this) but I've not been able to let for a while now, so payments are tricky without the rental income. Not to mention I've been spending a LOT of money on training for a future career which means I have no savings any more. I should be able to keep going until then, but was just a bit annoyed at the lender's bluntness really.
As a rate for a rented property thats not bad our is 7% on our rented properties liner33 said:
Moose. said:
I let the property out (mortgage company are aware of this) but I've not been able to let for a while now, so payments are tricky without the rental income. Not to mention I've been spending a LOT of money on training for a future career which means I have no savings any more. I should be able to keep going until then, but was just a bit annoyed at the lender's bluntness really.
As a rate for a rented property thats not bad our is 7% on our rented properties hornetrider said:
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OP - suck it up, buttercup! Can you not drop the rent asking price to let it out quicker?
Yeah thats not a bad idea, rent it out at 4/5ths of the monthly mortgage one a short term let, or rent rooms out on similar basis.OP - suck it up, buttercup! Can you not drop the rent asking price to let it out quicker?
www.Easyroommate.co.uk or something like that should be able to help you out there. better in the long run
Edited by Jgtv on Thursday 19th March 10:43
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