We bought our flat at the end of May 2011, and took a 25 year long interest-only mortgage at a rate of 3.15% fixed until 31st May 2013.
The current payment is £1,186.22 a month (the interest part).
When we came to look at new fixes for Lloyds, we saw a 2 year fixed deal (until August 2015) at 1.89%, with a £2k fee, which would mean an interest payment of £709.50 a month, or £21,156 over 27 months including the fee.
However, the best 2 year fix for exisiting customers is 3.24% until August 2015, no fee. That would cost £1,216.28 a month, or £32,839.56 over 24 months.
The existing customer deal would therefore leave us £11,683 worse off over the 27 month period.
The new customer deals are not allowed if you are an existing customer, we've checked.
It's obvious grubby and shabby, but is it against any regulation or rule anyone has heard of?
The current payment is £1,186.22 a month (the interest part).
When we came to look at new fixes for Lloyds, we saw a 2 year fixed deal (until August 2015) at 1.89%, with a £2k fee, which would mean an interest payment of £709.50 a month, or £21,156 over 27 months including the fee.
However, the best 2 year fix for exisiting customers is 3.24% until August 2015, no fee. That would cost £1,216.28 a month, or £32,839.56 over 24 months.
The existing customer deal would therefore leave us £11,683 worse off over the 27 month period.
The new customer deals are not allowed if you are an existing customer, we've checked.
It's obvious grubby and shabby, but is it against any regulation or rule anyone has heard of?