Fixed rate ending in Aug

perryhogan

Hello all. My partners and I fixed rate runs out in Aug which is currently at 5.68. Just enquiring as to what options we have. We took it out 2 years ago at £161,000 over 35 years which was also a 100% morgtage. Any help would be appreciated.

beecher

How much do you think the house is worth now? You're very likely to be in negative equity and unable to remortage -have a look at your mortgage offer and see what happens when your fixed rate ends, ie are you put on the SVR or a tracker/

BenL

You will most likley move to your lenders standard variable rate (SVR).

You will need to check the information in your mortgage documents to ensure this is the case though and then look at the interest rate figures on your lenders website.

August is quite a while away yet though, if you moved to the SVR today for instance the interest rate payble might well be lower than your current fix.

Who knows what the rate might be though in August.

perryhogan

yeah the house has gone down in value obvious reasons.do they generally send a letter or is it down to me to send them a letter?

perryhogan

BenL wrote: »

You will most likley move to your lenders standard variable rate (SVR).

You will need to check the information in your mortgage documents to ensure this is the case though and then look at the interest rate figures on your lenders website.

August is quite a while away yet though, if you moved to the SVR today for instance the interest rate payble might well be lower than your current fix.

Who knows what the rate might be though in August.

i presume as im fixed i cant move to SVR? Im with C&G by the way

beecher

perryhogan wrote: »

yeah the house has gone down in value obvious reasons.do they generally send a letter or is it down to me to send them a letter?

You'll automatically go onto the SVR and don't need to do anything - they'll send you a letter nearer the time. It is just your fixed rate which is coming to an end, not your mortgage.

You need to work out how you're going to deal with being in negative equity - can you overpay your mortgage?

perryhogan

Nope. Current payment pm is 909 and with other bills on top and having a 1 and half year old boy doesnt leave us with much money.

beecher

Well with any luck interest rates will still be low in August and you'll be able to overpay the savings you make when you drop to the SVR. Just be aware that when they go up, your payments will go up so you need to find a way of planning for that.