What happens after Fixed Rate ends?

harding1985

Only just taken out a 2year fixed rate, i'm just wondering what happens after that 2 year fixed rate is finished? Can I take out another fixed rate mortgage? Also would the rate be better? I take it the more you pay off your mortgage the better rates you get?

Cheers
Lee

opinions4u

harding1985 wrote: »

Only just taken out a 2year fixed rate, i'm just wondering what happens after that 2 year fixed rate is finished?

Your mortgage offer/key facts document will tell you. Most likely that you will go on to your lender's standard variable rate (SVR).

Can I take out another fixed rate mortgage?

Your lender will usually have a range of offers for existing customers ending a product. But they are not require to. You could also consider moving to a new lender via a remortgage.

Also would the rate be better?

How would anybody know what rates will be in 2 years? It will most likely vary from lender to lender. Take a look at your lender's web site to see how they are pricing at the moment.

I take it the more you pay off your mortgage the better rates you get?

On the whole, yes. But not always. It depends on the market at the time. At present less debt and more property value is very much the way to get a better rate.

getmore4less

The follow on rate should have been part of the decision making process

Why did you chose a 2 year fix

VIGILANT22

getmore4less wrote: »

The follow on rate should have been part of the decision making process

Why did you chose a 2 year fix

Totally agree..amazed at anyone taking a 2yr fixed in this climate and not to understand what happens at end of period is quite worrying.......I presume no advice was given here.....

new_home_owner_3

VIGILANT22 wrote: »

Totally agree..amazed at anyone taking a 2yr fixed in this climate and not to understand what happens at end of period is quite worrying.......I presume no advice was given here.....

and what would you recommend??:mad:;)

opinions4u

new_home_owner wrote: »

and what would you recommend??:mad:;)

Apologies to Vigilant for answering.

I suspect the "recommendation" would be to understand exactly what you are signing up for in the longer term, not just the initial two years.

While the OP is now doing this, the questions asked would have been more appropriate earlier in the process!

harding1985

thanks for all the help opinions4u...

dimbo61

Hi LEE
Well you have a 2 year fix rate deal on your mortagge so you know what your payments are for the next 2 years ( and it will fly by!)
So read all the paperwork so you have some idea what your mortgage reverts to at the end of the fix ( Even if its todays! SVR).
What you can do is overpay IF you have the spare money and build up a good emergency fund of 3/6 months of income in Cash ISA,s to help when all the surprise bills arrive GOOD LUCK