fixed rate mortgage - penalty?

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eimear25

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I currently have a fixed rate mortgage, fixed rate due to end in november of this year. however currently in process of trading up, hence will be drawing down a new mortgage (with the same mortgage company), as this will probably happen before november, will there be a penalty or will they give some grace as we will be staying with same mortgage providor?

thanks
 
Some lenders don't penalise you in this instance-Ulster Bank for one as far as I know.

bacchus makes a fine suggestion-each lender is different anyway, so best to confirm directly with them. If they want to charge you a penalty (which I would imagine would be small anyway as there is not much time to run on the fixed term) you could always mention that you are looking at other lenders.
 
Fixed rates are most likely higher now than where you locked in so (what is your rate, term and time to run?) your bank should will be more than willing to walk away without penalty, in fact they they should pay you e.g. they problably locked in your rate at say 4.1% for 5 years and charged you 4.8% (or course they dont literally hedge your individual mortgate but they will duration manage the mortgage book with interest rate swaps) the same rates now might be 4.9% and 5.6%.. so they will be more than happy to take back what ever term is left on the cheap fixed rate bank on the their books. Can you not keep the existing loan and just draw down the balance if its in your favour to do so rate wise?
 
thanks for the replies, as I only have a few months left to run on my fixed term, I doubt there should be too much of a problem. I just wanted to see how it works before I ring them i.e. I wanted to know where I stand in case they say yes I have to pay penalty etc.

thanks for advice!
 
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