Fixed mortgage to variable?

[peterwilson]

Hi
Sorry if this has been asked fore I searched but couldn't find.
I'm 1 year into a 5 year fixed rate mortgage.
Is it possible to change to a variable rate?
Are there fees for chaning over from fixed to variable mid-term?
Thanks
PW

 

[NorfBank]

Hi
Sorry if this has been asked fore I searched but couldn't find.
I'm 1 year into a 5 year fixed rate mortgage.
Is it possible to change to a variable rate?
Are there fees for chaning over from fixed to variable mid-term?
Thanks
PW

Yes it is possible.
There may be a penalty depending on the interest rate you fixed at and where interest rates are now. There also may be an administration charge depending on your lender.
Your best bet is to call your lender.

 

[mf1]

You can change - there will be a penalty. Check your letter of loan offer to see what the penalties are. Or just ask.

Why did you go fixed? I've always thought you are better going variable so long as you don't mind fluctuations. Fixed is good if you want the comfort of knowing exactly how much will leave your account every month and if you factor in that Banks will not generally sell you something that does not benefit them!

mf

 

[PaddyW]

There might not be a charge. I rang my bank, IIB last week, about breaking out of a 5.24% fixed rate and they told me at that stage there was none. There could be next time I ring, but it's the luck of the draw it seems.

 

[Bronte]

Some people who fixed a couple of years ago have very low rates (relative to current rates) and lenders may be happy to impose no penalty to change to a variable. Depends on your lender. If you look at the terms and conditions of your mortgage there will be a clause setting out what the penalty is. Do not accept anything over the phone, get it in writing.