Fixed Rate ending.. but lender added 2 months to term?

tom_lloyd_2

Hi,

I am currently on a Scottish Widows 2 yr fixed rate at 5.69% so obviously keen to get off this asap as their SVR is 4%!

The mortgage was advanced on 05/03/2008 when I purchased my house and (of course) interest has been accruing from that date. Therefore, I expected my fixed rate to end on 04/03/2010 and to step down onto their SVR after that.

However, Scottish Widows are saying that the fixed rate ends on 01/05/2010 as that is the 2 year anniversary of the first repayment.

Can anyone shed any light / give any guidance on what they think about this? I think it is sharp practice by them but not sure what I can do or if this is standard.

Thanks
Tom

Thrugelmir

Did you read the small print of your mortgage offer?

If rates had gone up rather than down, you'd be better off. So I doubt its sharp practice. More administrative conveniance.

opinions4u

tom_lloyd wrote: »

The mortgage was advanced on 05/03/2008 when I purchased my house and (of course) interest has been accruing from that date. Therefore, I expected my fixed rate to end on 04/03/2010 and to step down onto their SVR after that.

However, Scottish Widows are saying that the fixed rate ends on 01/05/2010 as that is the 2 year anniversary of the first repayment.

Can anyone shed any light / give any guidance on what they think about this? I think it is sharp practice by them but not sure what I can do or if this is standard.

Most lenders have an expiry date on a fixed rate deal, rather than a fixed term.

So a deal ending on 30th Arpil 2010 could be reasonably described as 2 years fixed in March 2008.

Here's a link to 2 year fixed rate deals with Halifax ... you'll see that they're fixed until 30th June 2012 ... 27 months from now, but they are clearly flagged as such.

The key for me is what your mortgage offer / key facts document says,

Take a look and then decide if you've been treated unfairly or not.

tom_lloyd_2

Thanks for the replies - I'll check the documents. Like you say if mortgage rates had gone up...