Hi JohnJay, thanks for your post. Looking at these crazy figures now, there is no way we could breakout from our fixed rated still running for another 4 years. I heard on the news this morning, interest rate is remaining the same. We were so naive to sign-up for 5 year fixed rate. So depressing........Fingal emailed me with the following "sample" breakout charges for a 150k mortgage. These figures look crazy to me.
4 years
14,756
3 years
11,154
2 years
6,063
1 year
1,628
Hi JohnJay, thanks for your post. Looking at these crazy figures now, there is no way we could breakout from our fixed rated still running for another 4 years. I heard on the news this morning, interest rate is remaining the same. We were so naive to sign-up for 5 year fixed rate. So depressing........
It's unfortunate when rates fall and you are stuck on a fixed rate. However, would you be feeling it is such a rip-off if rates had gone the other way?
A fixed rate doesn't change, so to suddenly claim it is a ripoff just because others can now get a better deal sounds very much like sour grapes. You knew what you would be paying when you took out the mortgage.
Although your mortgage is with the council, they would have in turn borrowed from someone else. If they let you out of the deal they would still be paying the higher fied rate on the other side so would lose out a lot.
The breakout calculation reflects the difference between the fixed rate mortgage and the current variable rates for the reaminder of the fixed term. As a result the longer ther term and the greater the difference, the greater the cost to break out.
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