EBS reduced rate on fixed - potential for change?

Poor_old_gill

Folks,

Just asking a quick question - EBS has reduced the rate on their fixed mortgages from 3% to 2.9%. What I am wondering is can I, although I'm on a 5 year fixed mortgage, ask them to keep my repayment at the same level or maybe even use this as an opportunity to change my repayment - due to that fact that they have technically changed the terms of deal.

My preferred option would be to just keep my repayment at same level and knock time off the term but I'd be interested to know whether this could be used as an opportunity to increase my repayment also.

Any opinions/knowledge on the above??

delta_bravo

Poor_old_gill wrote: »

Folks,

Just asking a quick question - EBS has reduced the rate on their fixed mortgages from 3% to 2.9%. What I am wondering is can I, although I'm on a 5 year fixed mortgage, ask them to keep my repayment at the same level or maybe even use this as an opportunity to change my repayment - due to that fact that they have technically changed the terms of deal.

My preferred option would be to just keep my repayment at same level and knock time off the term but I'd be interested to know whether this could be used as an opportunity to increase my repayment also.

Any opinions/knowledge on the above??

Have you already drawn down your fixed mortgage? If so, the rate change won't affect you unless you're at the end of term

hanaimai

To add to the above, if you've already drawn down, you'll have to 'break out' of your 5 year fixed rate and enter a new fixed rate contract with the lower rate. This will likely incur a break fee, amount of which can vary week to week. It could still be worth your time to break and re-fix, but you'd have to do the sums to see if there is any savings.

If you haven't drawn down, you can ask EBS for a new loan offer with the new rate, but this will delay your purchase for however long it takes for them to arrange a new offer.

Henry Ford III

Fixed is fixed.