Mortgage Deal Ending?
With interest rates having risen sharply through the last few years, now is the time to speak to a Mortgage Adviser to find out exactly what deals are available to you.
Fixed Rate Mortgages are an excellent way to give you certainty in your payments that you know won’t change. However, all fixed rate deals must come to an end, but what happens next?
What happens when my fixed rate mortgage term ends?
When most fixed rate mortgages end, the usual lower rate that was agreed for that fixed rate deal changes and reverts to the lender’s standard variable rate, or SVR.
In most cases the lenders variable rate is higher than that of the fixed rate which means the homeowner’s monthly mortgage payments will increase.
In some cases the standard variable rate is linked to the Bank of England Base Rate, in other cases it is not.
The variable rate can add typically an increase of 2% interest to your mortgage costs, that can be a large increase in monthly payments.
What are my options when my current rate mortgage ends?
You can of course simply let your current deal change to your existing lenders variable rate. This usually means a more expensive mortgage.
Why would you do that?
Being on the variable rate mortgage usually comes with you having no restrictions in terms of overpayment or full settlement of your mortgage. You may be considering moving home, perhaps simply selling and moving into rented or overseas for example. You may have a large lump sum coming from savings or inheritance and be in a position to clear a large part of the mortgage without penalties (early repayment charges).
However, if you’re not happy with this scenario you do have other options. They include:
- Agree a new mortgage deal with your existing lender (Rate switch)
- Look to switch your mortgage to a new lender (Remortgage)
When you speak to us we will automatically review the deals offered by your existing lender and compare those to the wider market.
In order to obtain the most appropriate new deal to match your specific needs, speaking to a qualified and experienced Mortgage Adviser can be a good next step. We can answer all your questions about what happens when your current mortgage deal ends, what your options are, and what the best way forward for you would be.
We know everyone’s circumstances are different, that’s why we work with over 100 lenders to help ensure we meet your specific needs.
What we do for our clients
Needless to say, we don’t have many clients on a lenders standard variable rate deal.
Once you are a Mortgage Solutions client you can sit back and relax.
We contact our clients regularly to review that any needs they have are being met, and have a review process in place that means we will contact you in all cases 3 to 4 months before your current mortgage deal ends. This then gives us time to ensure that your mortgage deal remains competitive and as low cost as possible.
We can arrange a rate switch or remortgage for you, whatever best meets your needs.
Have a look through the Google reviews and see if that is something you would like to be a part of.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
