I am one of those unfortunate people who are committed to a fixed rate loan at 8.5% for another 2 years - loan $430K. Currently, I calculate that it is costing me about $700 extra in Interest Only repayments due to the drop in rates.
Not sure if this would work but I am willing to commit to a further period, say a 5 year period if it means I can have the rate reduced from 8.5% to about 6.5% which is my current lender's 5 year fixed rate. I am willing to do this as I have longer term strategy with the IP the loan relates to and the reduced rate would mean it is close to a cash flow neutral property...
I have done some sums and believe that ING would be in a better position in agreeing to replace the existing fixed rate loan with a new fixed rate loan. Interest income on current basis to ING is say $72K on the current loan versus say interest income of $140K for a new 5 year fixed rate loan.
Needless to say that if I can't correct this current pain, I will be moving the loan to another lender at the end of the current loan.
So what do you think..... Is ING likely to consider the bigger picture of such a proposal or would you expect that they would stand firm - the idea being to dangle a larger carrot so they waive the break fee.
Interested in feedback. Thanks.
Not sure if this would work but I am willing to commit to a further period, say a 5 year period if it means I can have the rate reduced from 8.5% to about 6.5% which is my current lender's 5 year fixed rate. I am willing to do this as I have longer term strategy with the IP the loan relates to and the reduced rate would mean it is close to a cash flow neutral property...
I have done some sums and believe that ING would be in a better position in agreeing to replace the existing fixed rate loan with a new fixed rate loan. Interest income on current basis to ING is say $72K on the current loan versus say interest income of $140K for a new 5 year fixed rate loan.
Needless to say that if I can't correct this current pain, I will be moving the loan to another lender at the end of the current loan.
So what do you think..... Is ING likely to consider the bigger picture of such a proposal or would you expect that they would stand firm - the idea being to dangle a larger carrot so they waive the break fee.
Interested in feedback. Thanks.