Mortgaged to the hilt?

Q We took out a mortgage with Abbey National in 1998, fixed at 6.55% until 2003 and locked in until 2005. Obviously, this turned out to be financially nonsensical, so we paid the ?1,000+ to escape it, having previously tried to negotiate our way out of it. Does the forthcoming ombudsman's report give us any potential redress?

SL

A No. The mortgage you took out was for a fixed period with a tie-in to Abbey's standard variable rate (SVR) for two years after the fixed period ended. Most fixed, capped and discount mortgages charge redemption penalties if you switch lender or mortgage during the agreed term.

All that has happened is that you have had to pay just such a redemption penalty. I agree that sticking with your original fixed rate of 6.55% would have been financial madness in a period of such low rates, but unfortunately that was down to a poor choice of loan at the outset. And nothing in the forthcoming ombudsman's report is going to touch on that. I'm afraid you'll just have to put this one down to experience.