Can You Break A Fixed Rate Mortgage?
Your home may be repossessed if you do not keep up repayments on your mortgage.
If you’re currently stuck on a fixed rate mortgage but are looking to change to a new one, you’ll need to know whether it’s possible to break your fixed rate mortgage. Perhaps your income has increased or decreased, or you are looking to purchase a new property. Whatever the reason you’re looking to leave your fixed rate mortgage, this guide has you covered.
It is possible to break a fixed rate mortgage, but you will be charged an early repayment fee. This is typical of most mortgages and should be outlined in your terms. For a fixed rate mortgage, you can typically expect to pay a certain percentage of the loan. This should fall between 1-5%.
What happens if you break a fixed mortgage?
You cannot simply break a fixed mortgage. You need to speak to your lender first who will be able to inform you of your options and of any early repayment penalty charge if required. You can always speak to your lender to see if they can change your mortgage, but if they decline, you may have to stick with your mortgage until the end of your fixed rate term.
Is it worth breaking a fixed rate mortgage?
The best way to find out if you’re better off changing your mortgage even with the exit fee, is to speak to a mortgage broker. They can even help you find a suitable alternative mortgage that’s ideal for your circumstances.
Speak to our mortgage broker in Northampton today. We will help you make the most cost-effective decision and can speak to lenders on your behalf to take the hassle out of managing your mortgage. Book your initial consultation with us today.