S
You really should get independent advice on such matters in future!on my bank managers advice
Yes - breaking a fixed rate period usually involves penalties. Breaking a three year fixed rate period will probably cost a few bob alright. Your lender should be able to tell you or the terms & conditions of your loan agreement should clarify. A rough idea of the penalty might be the amount of fixed rate interest payable for the remainder of the term when you break it. You need to check this figure and then what you stand to save on a tracker rate before doing anything. It may not be worth breaking the fixed rate agreement and you may just need to sit it out.My lender tells me it will cost me thousands to get out of it. I owe 300,000, and as interest rates are falling I want to move to a tracker mortgage.
Any advice or experience of same?
That's poor advice. And I'm sure the bank manager would have known this at the time.on my bank managers advice
These people are not advisors - they are tied sales agents. Don't go to them looking for independent, professional advice in your best interests!This week the mortgage advisor as my bank
Just before Christmas I moved from a varible to 3 year fixed term mortgage at 5.I% on my bank managers advice My lender tells me it will cost me thousands to get out of it. I owe 300,000, and as interest rates are falling I want to move to a tracker mortgage.
Any advice or experience of same?
Suzee
Which comments exactly?Also, some of the comments above on the advice received (re. fixed rates) is not particularly defensible.
Called up my bank on monday re remortgaging a 5 year fixed rate mortgage (now into second year). I will be doubling my mortgage. I asked what the fee was for breaking the fixed rate and they said zero. Is this because i am doubling mortgage?
Informed guess is a bit of an oxymoron in my opinion. Even if they are making an informed guess there is no onus on them or guarantee that the "advice" arising will be in the best interests of the borrower. The banks and their staff must maximise returns for shareholders and not minimise costs for borrowers.Clubman is of course correct on the independent advice - but even he would admit they are making an informed guess.
Informed guess is a bit of an oxymoron in my opinion. Even if they are making an informed guess there is no onus on them or guarantee that the "advice" arising will be in the best interests of the borrower. The banks and their staff must maximise returns for shareholders and not minimise costs for borrowers.
I owe 300,000, and as interest rates are falling I want to move to a tracker mortgage. Any advice
Suzee
Out of interest, where did you get the idea from that interest rates are falling?
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