end of fixed period

doelani

Not for a year yet but just wanted to ask...

Our mortgage is subprime , 8.19% :eek: and was fixed for 3.5 years. Paperwork says "fixed until 01/10/2011 then a variable rate 3.29% above BBR for the emaining term of load"

I know this can change but at the minute it is a lot less than we are paying at minute. Will our mortgage provider make us change onto another fixed period if we stay with them ?

I know we can look for another mortgage and we will no longer be subprime by them, will be over 6 years from any defaults etc so they will all have dropped off our credit file. We need to get some work done to house before we remortgage and we are not sure if we will have the money saved for this before October 2011 so may have to just go to the SVR for maybe 6 months or so until we get this work done .

Very confused as we alwyas used to remortgage when offer periods where up but do not think it will be possible next time

thanks

firstaspect

No your lender shouldn't make you changed onto another fixed period. After 1/10/2011 you should be paying 3.29% above BBR and then it's up to you whether you wish to sign up to another fixed term with them or another mortgage lender or just let it carry on at that rate.

doelani

firstaspect wrote: »

No your lender shouldn't make you changed onto another fixed period. After 1/10/2011 you should be paying 3.29% above BBR and then it's up to you whether you wish to sign up to another fixed term with them or another mortgage lender or just let it carry on at that rate.

thanks ........

doelani

sorry another question....hope this makes sense

We are on repayment so when rate changed to SVR will our payments still go down or will they just continue to take the same payment but more going off the rapayment? or will they charge us the SVR + an amount towards the repayment?

beecher2

Your payments will go down - you can work out how much by using a mortgage calculator, though obviously rates may be higher by next October. You'll get a letter from them next summer sometime telling you how much you'll pay.

doelani

beecher2 wrote: »

Your payments will go down - you can work out how much by using a mortgage calculator, though obviously rates may be higher by next October. You'll get a letter from them next summer sometime telling you how much you'll pay.

thanks I know a year from now is a long way off but trying to work out when we will have enough money saved to get the word done we need.

dimbo61

Whats more important is how much equity do you have in the property by october 2011.
Did you buy mid 2007 ? when house prices were very high !
Have you paid much off the mortgage and did you put down a good deposit
Hopefully with a better credit rating and some equity you should get a much better mortgage deal