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Fixed Rate Mortgage

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  • 05-03-2009 5:26pm
    #1
    an_other
    Closed Accounts Posts: 183 ✭✭


    I'm stuck on a fixed rate of 5.1% until May 2010 (it seemed like a good idea 3 years ago).

    What is my best best.

    Should I go through the hassle of switching lender and try and take the charges they will throw at me?

    Or should I try and get it interest only for the remaining term of the fixed rate? (will they allow this?)

    Any know how to work out what my repayments would be on interest only?

    Funds are tight at the minute so I really need to get my payment down.


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    #2
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    an_other wrote: »
    I'm stuck on a fixed rate of 5.1% until May 2010 (it seemed like a good idea 3 years ago).

    What is my best best.

    Should I go through the hassle of switching lender and try and take the charges they will throw at me?

    Or should I try and get it interest only for the remaining term of the fixed rate? (will they allow this?)

    Any know how to work out what my repayments would be on interest only?

    Funds are tight at the minute so I really need to get my payment down.

    It's very hard to say unless you find out what the breakage costs are TBH.


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    #3
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Your original mortgage documentation should indicate how much of a breakage fee you will pay. Typically this is expressed as a formula comprising of the fixed interest rate, the current standard variable rate, how long is left on the term and the amount outstanding.

    If you don't want to work it out for yourself, or if your bank doesn't use/indicate such a formula, then you should contact them and ask them for a quote. (Or you can put up the formula here, along with the relevant information and I'm sure some helpful boardsie will calculate it for you!)

    Whether it's worth it depends very much on how much the breakage fee is vs how much you would save over the remaining term of your fixed rate period if you were only paying what you predict the standard variable will be over that term...


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