It’s called a fixed loan for a reason. Because it’s fixed.
Once you lock yourself in with a fixed home loan it can be tricky (read ‘expensive’) to change the situation. This means that if floating rates fall or if your financial circumstances change and you need to alter your loan arrangements it could leave you seriously out-of-pocket.
Banks term it an ‘early repayment adjustment’, essentially it’s just a hefty break fee that banks use to help compensate their investment risk.
Fortunately forking out a break fee isn’t always the only option. It’s always a good idea to get in touch with your Prosper adviser to confirm whether a cost will be incurred. If you want out of a fixed term because you want to repay the loan faster you can often negotiate higher payments instead of breaking the term.
Whatever your situation talking to the team at Prosper is the best solution. We can talk you through the options and tailor a loan set up personalised to your needs.