Exiting fixed rates
We receive a considerable level of inquiries in regard to switching from expensive fixed rates to cheaper variable rates with another lender.
The first step is to establish the following information from your existing lender
- the cost of exiting your fixed rate contract
- the remaining months in your fixed contract
- the current balance due
- the rates available to you if you switch to a variable rate
This information is needed before we can advise you fully.
We will advise you whether or not it makes sense to switch taking account of many factors including:
- Your maximum borrowing amount with another lender taking account of the current valuation of your home and the make up of the advance required.
- Your net savings when comparing the break fee and the lower rate
- Switching costs
- The range of products and prices being offered by a new lender compared to your existing lender.
- Whether it is advisable to break a fixed rate in the context of your own risk profile.It is important to remember that rates will rise again!
We are here to assist you make the right decision.