end of term v's new rates question.

scheming_gypsy

Hello..
Just a quick question if you can help (apologies if it doesn't make 100% sense i'm at work and grabbing a few minutes).

My fixed term mortgage is coming to an end soon and the paperwork i had a while back (6 months or so) had the usual about my payments being x and then rising to y at the end of the term on a variable rate mortgage.

With the interest rates dropping since then; do my payments still stay as y, as per the details outlined months ago or will they automatically drop with the lower interest rates?


cheers,

irn_bru

If your mortgage reverts to your mortgage company's standard variable rate (which it probably does) then you will pay this rate. It is likely that this will have reduced since you had that letter and you will get a new letter from them before your next payment.

If in doubt give them a call

scheming_gypsy

Cheers Irn Bru, my last letter was ages ago which was what got me wondering. I would expect a letter informing me of the new rates although i'm guessing it might come just before the payments change.
Giving them a bell isn't easy, i set off for work at 7am, get home at 7pm and have a half hour lunch break.