Info re: Fixed Term Mortgage ending

RockNRollNerd

Hi all,

Quick question really. We're new(ish) homeowners and are due to come to the end of our Abbey 2 fixed term mortgage deal at the beginning of June 2010. It's a 100% mortgage and it's interest only, but we've made payments off the capital seperately. The current rate is 7.4% ( i think) and I'm just wondering what happens when it ends? I'm assuming current interest rates are lower, so if we did nothing, would it temporarily switch to that, or if we want a new fixed term mortgage, do we have to arrange it before our current one runs out? We're still quite new to this!

Thanks,

Kay

Boozer

Do you have all the mortgage papers you signed when you took it out in the first place, it will tell you in there, or else just phone them and ask, that is what i did few months back, found out that after my fixed rate it is going to 1.75% over base, so was very happy with that, you may well be in for a nice surprise.

herbiesjp

Definitely find out what your follow on rate will be.

Sections 4 and 6 will be able to tell you what rate you move on to - if it states SVR then you will need to find out from Abbey what SVR they currently have

They will also tell you if you are eligible for any other deals

If you bought 2 years ago, you will find your property value will have decreased - so even though you may well have paid off some extra capital via overpayments, you may find that you are in negative equity.

What that means is that you will have to stay with Abbey, and they may not have many options available for you - however if you do drop onto SVR, you will have a better rate than you are currently on at present.