Clarification on SVR Vs Fixed

jbsurrey

Hello Guys,

Quick question that has just pricked my mind from reading a thread on here.

We have gone for a 2 year fixed on 4.59% - I know that we cannot remortgage until that promotional period has ended. Now, here are my questions:

i) With a Standard Variable Rate Mortgage, is one bound for a minimum term as with a fixed mortgage?

ii) Can one re-mortgage as and when they like if they have an SVR to another provider? (mercenary I know!)

iii) Can one change from an SVR to a fixed rate as and when they want?

Thanks,
Jason

opinions4u

jbsurrey wrote: »

We have gone for a 2 year fixed on 4.59% - I know that we cannot remortgage until that promotional period has ended.

You can, if another lender wishes to lend to you, but there is most likely an early repayment charge to pay to your current lender.

i) With a Standard Variable Rate Mortgage, is one bound for a minimum term as with a fixed mortgage?

Not usually. But individual lenders can have a product that offers a fix / tracker / discount for a period and then retain an early repayment charge for a period of time while the SVR is applied to the account.

ii) Can one re-mortgage as and when they like if they have an SVR to another provider? (mercenary I know!)

Yes, assuming the other lender will have them!

iii) Can one change from an SVR to a fixed rate as and when they want?

Yes, assuming the lender is offering one. There is no requirement for a lender to offer alternative products to their SVR.

In other words, know the terms and conditions of the individual mortgage, as they are not all the same!

Hope that helps.

jbsurrey

Hello Opinions4u,

Thanks for this - I think the final line says it all: know your mortgage!

Thanks again,
Jason