Hi All, I'm currently reviewing my bank interest rates for my rental property portfolio.
I have a fixed rate IO mortgage at 7.3% due to mature in October 2010. My bank is currently adverting this same 7.3% fixed rate for a 4 year term inclusive of my rate discount.
I approached my bank asking could I refix the mortgage now for a further 4 years considering there should be no extra cost to me or to the bank as the interest rate is the same, apart from maybe an admin fee. I was surprised to be advised there would be a significant charge to break the loan. Have I missed something here? If I was breaking the loan looking to lock in at a lower rate I could understand but in my case its a continuation of the same money at the same rate. I would appreciate some advice.
I have a fixed rate IO mortgage at 7.3% due to mature in October 2010. My bank is currently adverting this same 7.3% fixed rate for a 4 year term inclusive of my rate discount.
I approached my bank asking could I refix the mortgage now for a further 4 years considering there should be no extra cost to me or to the bank as the interest rate is the same, apart from maybe an admin fee. I was surprised to be advised there would be a significant charge to break the loan. Have I missed something here? If I was breaking the loan looking to lock in at a lower rate I could understand but in my case its a continuation of the same money at the same rate. I would appreciate some advice.
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