Fixed Rate Change

alxmorgan

Hey all,

half way through a 5 year fixed mortgage and was wondering if I wanted to go variable what the story is with

1) Being allowed to
2) How you go about it
3) Penalties involved
4) anything else I should know

thanks,

Tigger

won't be feasaible


imho

alxmorgan

thanks for the reply but any chance you'd elaborate ?
Not feasible for what reason exactly ?

red dave

Depends on the original agreement with the bank. You should be able to change over however you will probably have to pay a penalty for breaking from the fixed rate early. I think normally you will have to pay a percentage of the interest of the remaining fixed years

Tigger

alxmorgan wrote: »

thanks for the reply but any chance you'd elaborate ?
Not feasible for what reason exactly ?

banks like money
if what you want to do will make you a saving then it will loose them money
so they will penalise you the amount that they will loose plus a bit more for being clever

you are on a fixed rate for x years this maens thery couldn't put up the rate when the ecbrate rose now the ecb rate is dropping they will noty be putting the variable down as much as they would have if you were on say a tracker yet the penalty will be as harsh as if you were switching to a tracker (no trackers any more)


if you send me the t&c i'll read it for you and tell you how much you'll loose

sweetie

alxmorgan wrote: »

Hey all,

half way through a 5 year fixed mortgage and was wondering if I wanted to go variable what the story is with

1) Being allowed to
2) How you go about it
3) Penalties involved
4) anything else I should know

thanks,

surely if you fixed your rate 2.5 yrs ago you would be on a lower rate than the current variable, I would have thought.

Ste.phen

sweetie wrote: »

surely if you fixed your rate 2.5 yrs ago you would be on a lower rate than the current variable, I would have thought.

Was thinking that myself, but i guess it depends on the bank / loan / property

alxmorgan

You're right of course at the moment I am below the variable rate and happy with that.

To be honest I was just wondering about it if interest rates happened to start to fall rapidly.

I guess I was also thinking about what would happen if we moved house

thanks,

antoinolachtnai

If the OP is above the rate, he might be able to get out with a pretty low penalty. Ask the lender.