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Ask an Expert Is it possible to switch mortgage half way through a five year fixed?

Is it possible to switch mortgage half way through a five year fixed?

Q: We are currently half way through a fixed 5 year Vendor Gifted Deposit mortagage from the Halifax. Our House buy went through at 77,000 however are mortgage was for 69,000 as 10% was recognised as our deposit by the bank. After the fixed 5 years at 7.45%

A:

To answer your question, yes it could be possible for you to remortgage away from the Halifax onto a cheaper product, although we would need to check whether it would be in your best interests to do so. If you were to repay your mortgage before the end of the fixed rate period there would normally be an Early Repayment Charge due. You should check your mortgage offer from the Halifax to see exactly what Early Repayment Charge would be applicable. Provided that the savings you would make by remortgaging to a cheaper product with a new lender worked out as being greater than the cost of the Early Repayment Charge you would need to pay, then this could be worthwhile considering. You would need to take into account that the maximum loan-to-value you could borrow for a remortgage would currently be 90%. If your property has fallen in value since you bought it, and if you didn’t have the funds to cover the Early Repayment Charge, then it may not be possible for you to remortgage to a new lender. It would be good to have a chat about your circumstances and current mortgage arrangements, and we can then see if it would be worthwhile you remortgaging.

These questions are for information purposes only and do not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration
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This Month’s Top Fixed Rate

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Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.46%

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This Month’s Top Variable Rate

Variable rate
Initial rate: 0.97%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.37%

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Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

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