At the end of our 6.6% fixed rate, is our rate likely to INCREASE or DECREASE?.....

PrincessJR

We have only had our mortgage for 18 months.

We borrowed £152000 + fees, our house cost £160000.

In 18 months time our fixed rate of 6.6% comes to an end. We thought we might get a cheaper rate once the 6.6% ends, as the interest rates have fallen by so much (I understand its hard to predict what will have happened by Nov 2010!), but am worried now that actually, our lender Future Mortgages will hike up our payments as we cant really look anywhere else for a mortgage - we have 90% LTV.

Can anyone shed any light on what 'usually' happens?

Thanks

_Andy_

No point speculating as the revert rate will depend on BOE base rate / LIBOR rate at the time.

inspector_monkfish

PrincessJR wrote: »

We have only had our mortgage for 18 months.

We borrowed £152000 + fees, our house cost £160000.

In 18 months time our fixed rate of 6.6% comes to an end. We thought we might get a cheaper rate once the 6.6% ends, as the interest rates have fallen by so much (I understand its hard to predict what will have happened by Nov 2010!), but am worried now that actually, our lender Future Mortgages will hike up our payments as we cant really look anywhere else for a mortgage - we have 90% LTV.

Can anyone shed any light on what 'usually' happens?

Thanks

what 'usually happens' doesnt happen anymore !!!

the lenders just make it up as they go along now !

inspector_monkfish

_Andy_ wrote: »

No point speculating as the revert rate will depend on BOE base rate / LIBOR rate at the time.

...and Swap prices..

Gorgeous_George

You need to look at the terms of your deal.

Some mortgages revert to SVR at the end of the fixed period. Others to a tracker deal. Both are variable rates. Whatever it reverts to will be on your Key Facts document. When the fixed period ends, the variable rate will be either higher or lower than 6.6% (it could even be 6.6%). If it is higher your payments will go up. If it is lower your payments will go down.

When the fixed period is almost complete (3 months to go or thereabouts) you need to calculate your LTV and see what deals are available. It may be worth taking a personal loan to secure a better deal. In the meantime, save save, save and overpay if you are allowed..

GG