what happens at end of fixd term?

SR1

hi,
my 3 year fixed rate of 5.69 :eek:comes to an end in a few days, and my paper work says my mortgage will change to a life time tracker at .95 above base rate.:jthis is with woolwich, but when looking at there rates on there website there lowest tracker rate is 2.29. not as nice as 1.45. i just wondered if this .95 was guarenteed for the term when i took out the mortgage ?or will i be paying the current advertised rate.

oh , one more queston, will they write to me to inform me of my monthly payments before the next payment is due? i pay by standing order so will have to change amount myself.

getmore4less

You get the rate quoted in the T&Cs.

Not sure if they will let you know,

Just keep paying the same and pay your mortgage off quicker.

opinions4u

You get the lifetime tracker at BofE + 0.95%. Which is fantastic news.

Strong advice: Save whatever reduction in payment that you benefit from, so that you can afford a higher payment as and when base rates rise again.

They will write to you before your payments are due to change. Some lenders operate an annual review of payments, so the change mighr not be immediate. A quick telephone call to them will get the answer as to when this letter will come.

Hope that helps.

Thrugelmir

SR1 wrote: »

hi,
my 3 year fixed rate of 5.69 :eek:comes to an end in a few days, and my paper work says my mortgage will change to a life time tracker at .95 above base rate.:jthis is with woolwich, but when looking at there rates on there website there lowest tracker rate is 2.29. not as nice as 1.45. i just wondered if this .95 was guarenteed for the term when i took out the mortgage ?or will i be paying the current advertised rate.

oh , one more queston, will they write to me to inform me of my monthly payments before the next payment is due? i pay by standing order so will have to change amount myself.

What is the precise wording regarding the rate charged once the fixed term ends?

Let_Us_See

At the end of your fixed rate your mortgage will revert to base rate (currently 0.50%) + 0.95%, giving you pay rate of 1.45% (believe me that is a very good rate). Your interest rate will `mirror' any changes in base rate, but will always be 0.95% above base rate.

However, if you want another fixed rate then you will either have to negotiate with Woolwich or re-mortgage to another lender.

Would not rely too much on Woolwich contacting you.

blueberrypie

You're on a similar deal to us, but ours was taken out under a year ago so we're on a lower initial rate and then a higher tracker (BBBR + 1.99%). The BBBR changes, but the percentage you pay above it doesn't - that's set when you take the mortgage out.

As others have said, you'll revert to the tracker, as stated on your own mortgage documents, for the life of your mortgage. Great news when rates are so low - now's the time to get overpaying! :-)

SR1

it say : A fixed rate of 5.69 until 31/10/2009. After 31/10/2009 the rate will be a Variable rate which is 0.95 abote the BB Base rate, currently 4.75, for the remainder of the term.
I did also get a letter a couple of months back quoting .95, but advertising a fixed rate at 3.something. do you think its wise to stay with the tracker, the rates on sale now are twice as much as 1.45 with a 1K aplication fee.

Thrugelmir

Let_Us_See wrote: »

At the end of your fixed rate your mortgage will revert to base rate (currently 0.50%) + 0.95%, giving you pay rate of 1.45% (believe me that is a very good rate). Your interest rate will `mirror' any changes in base rate, but will always be 0.95% above base rate.

However, if you want another fixed rate then you will either have to negotiate with Woolwich or re-mortgage to another lender.

Would not rely too much on Woolwich contacting you.

Seems you've fallen on your feet. Though this only applies to the mortgage as it currently stands. So hope you intend to stay.;)

SR1

how can i work out the difference over paying by a couple of hundred a month will make to the term of my mortgage?

blueberrypie

SR1 wrote: »

it say : A fixed rate of 5.69 until 31/10/2009. After 31/10/2009 the rate will be a Variable rate which is 0.95 abote the BB Base rate, currently 4.75, for the remainder of the term.
I did also get a letter a couple of months back quoting .95, but advertising a fixed rate at 3.something. do you think its wise to stay with the tracker, the rates on sale now are twice as much as 1.45 with a 1K aplication fee.

There seems to be a consensus that rates will be low for quite some time, so I certainly wouldn't be rushing to get onto a fixed rate.

If you *do* decide that you prefer the security of a fixed rate, check your mortgage paperwork. Ours says that after our initial period on the fixed rate, we can transfer to any Woolwich product but with the fee waived - yours might be the same.

blueberrypie

SR1 wrote: »

how can i work out the difference over paying by a couple of hundred a month will make to the term of my mortgage?

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