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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Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home.  

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