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2 year fixed - ending in September

Hello,
My 2 year fixed rate with First Active is ending in September. Had a look through the paperwork from when I changed to them in 2006 and found the following:

2 years fixed at 4.99% then after that onto a mortgae which is 1.1% above the the bank of england exchange rate.

As the interest rate is now 5.0% I'm interpreting that as meaning than in Spetember I will love onto a tracker type mortgage at a rate of 6.1%. IS this correct? I seem to be hearing all sorts of horror stories about remortgaging and am thinking that maybe I'm looking at this a bit too simplistically!

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Hi Graham
    Yes 6.1%.
  • whu
    whu Posts: 23,461 Forumite
    10,000 Posts Combo Breaker
    Graham - Andy is right - just one thing - you will be paying 1.1% above the BOE base rate not exchange rate - just thought I would mention it so that when you are checking things you know which figure to look at as the base figure
    Keep the Faith:cool:
  • sarkin
    sarkin Posts: 785 Forumite
    This is another reason why brokers are strugling for business, people coming off fixed rates and sitting on trackers as it can cost 1-2k to remortgage onto a rate the same as the tracker offered by the current lender.
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