Help - query over fixed rate break out.

[Grace80]

Hi,

I drewdown my mortgage a year ago and it was based on a tracker rate. However, I got a bit paniced 6 mths ago and stupidly fixed the rate for 2 yrs. (yr and a half left). I know that if I break out of the fixed rate now I will incur a penalty. My question is, can I go back to the tracker rate (even though my bank has discontinued them for new customers) as it was on my original offer letter. Or will the bank make me revert to their standard variable?

 

[QED]

Firstly I don't know that you were 'stupid' to fix your mortgage 6 months ago - maybe a bit hasty. I fixed my mortgage for Five Years last year because I thought that inflation rates in the EU would mean that interest rates would rise quite a bit more.

I switched back to variable last week with no charge - are you sure you will have a charge - give you bank a ring today before rates offically come down again.

I don't think you bank will offer you a Tracker.

 

[Grace80]

Thanks for that QED,

I fixed for the same reason - rates did actually go up afterwards (only to come down again!). Called the bank - quite unhelpful and said that I needed to submit my request in writing - more time wasting. I fixed at 5.15 and the 2 yr fixed is now 4.85%. Therefore I assume there will be a breakage cost but fingers crossed there won't be. My initial rate was the tracker and there is absolutley nothing in my letter of offer stating that if I fixed it would revert to variable. Surely I have some comeback for the tracker if that is the case?