we signed up for a 5 year fixed rate morgage in june, Feeling a bit sick with the 1.5% cut. any advice.

If you were happy with the rate at the time, it was the best product for you and is affordable - be happy.

You cannot predict the future, and you cannot change the past.

Over the next 5 years, interest rates may drop, but they will also inevitably increase. After 5 years, you may look back and be thankful that you fixed when you did.

My thinking is that you buy a mortgage, like you buy any product. Sometimes you see the same thing a few weeks later in as ale and think "what if I had waited". But at the time of buying you were happy with the product at the price you paid. Don't look at interest rates any more ... at least not for 4 1/2 years!

I think Integra could have been a bit more helpful. I certainly would not just except it.

The question to ask is do you incur penalties if you want to get out of your scheme. If not you should be able to change.

If you do have penalties work out if it is of any financial benefit to switch anyway. You could hang on until next year when interest rates go down again and then decide.

A mortgage is the biggest financial commitment you are likely to make in your life and so it is vital to get it right. There is no harm in contacting your current mortgage supplier and asking them if there is anything they can do. Tell them your expenses have gone up - gas/electricity/water/petrol/insurances etc. In this current economic climate they may be more helpful than you think.

Integra was only saying what is true and there have been many similar posts suggesting that the wrong product was chosen at the time in retrospect. In June there was no light at the end of the tunnel in regards to lenders lowering their rates and everyone wanted to fix for the security. If the payments were affordable and there was a need to know how much was going out every month the fixed option was the best bet. However brokers all over the country knew that that to keep recession at bay rates would have to come down and it is these brokers that advised on trackers, and at the moment they are flavour of the month. When the fixed rates rose in August the brokers that advised fixing rates in June and July were themselves flavour of the month. Finally of all the equations I have done for clients in similar circumstances have all ended in them being worse off by paying a penalty, adding it to the mortgage and paying interest on it as well. Circumstances dictate decisions and unless you have a crystal ball or you find a broker that is on the ball, then stick to your decision because it was right at the time, unless of course you went direct to the lender and didn't really receive advice????

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Regards

Ian

Have you not thought that if you inform a lender your expenses have gone up this might effect your overall affordability! and give them cause for concern...........Integra was 100% right, at least you know have a mortgage for the next 4.5yrs, think of all the people who cannot remortgage due to changing criteria in the mortgage market................as much as it is good to have discussion forums some of the suggestions i read here are worrying and if acted on could result in people being financially disadvantaged........It is amazing how people will ask the views of a non qualified who could be anybody on the internet when they could easily pick up the phone and arrange a face to face meeting with an adviser......

Affordability for what exactly? In these times of threatening recession lenders have been told to be more sympathetic towards its customers so I doubt if any harm would be done.

I recently took out a fixed mortgage until 2012 and there were no penalties if I withdrew, It took me one phone call and my lender has just agreed to put me on a better rate.

Therefore there would be no harm in enquiring with your mortgage lender to see if there were any options, and that was my point regarding Integra's comments. He should have asked more about loky's financial situation before saying nothing could be done and so was not 100% right.!

It is amazing how qualified people can get it wrong too because plenty do! It's so called qualified people working in financial institutions that have created this mess in the first place.

Fixed rates usually carry a redemption penaty and I would love to know who your lender was and what rate you were on that had no penaties??? I know products and the terms that they are agreed, and with a fixed rate taken out in June of this year woud have had penalties. The fault lies with lenders and not advisers where overlending is concerned, you offer a customer easy money and they will take it. Advisers are responsible for advice lenders are not....who do you think would be more worried about offering the wrong deal????

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Regards

Ian

Likwise, I'm interested in hearing who the lender was as this is a most unusual approach. Some lenders do it the other way around, such as C&G who do an all weather tracker - you can move from the tracker at any time to one of their fixed rates. I expect the poster may have meant that their product was changed sometime between the decision in principle and exchange of contracts. I'm sure that myself, affinity, completefinance and others would hold our hands up and say we weren't aware of such a deal if there was indeed such a deal - please share the info as I'm intrigued.

Brian

My situation was that my fixed rate deal had come to an end and the mortgage provider offered me a choice of two fixed rate deals. One which was slightly higher than the other but carried no penalty for leaving. That was the one I chose.

This leads me to the point I was trying to make with regards to the original query from Locky. He only provided a limited piece of information and so I just felt he had to be asked a few more questions before advising him.

Hi

I have a long term fixed rate mortgage that was sorted out in June. Some of these replies i'm not finding very helpful. I spoke to an adviser who suggested a fixed term would be the way to go to avoid the turbulence in the market at that time.

also, while the final decision is mine, part of that is down to the reality of the market at the time. for example, if you were about to retire, then the stock market now will affect your annuity - you dont' get a choice in that.

So many people will find themselves with deals which are very uncompetitive due to the massive shift in the landscape these past few months, through no fault of their own - they just had to remortgage at a bad time.

I'm stuffed anyway, as I have a 3% penalty which is very annoying when colleagues at work are saving £1k a month!

Hi,

Check your deal you might have some overpayment facility. If yes, borrow money at cheaper rate from elsewhere and use overpayment facility. But be cautious to be able to payback the loan in case tide reverses.