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Moving from fixed to SVR what does this mean?
salvargi
Posts: 1 Newbie
Good afternoon all,
I hope you can be of help.
Yesterday I received a letter from my mortgage provider NRAM.
My five year fixed rate of 6.89% ends in June 2012.
In the letter it states...
“As detailed in you Offer of loan you interest rate is guaranteed to remain below our standard variable rate for the life of your loan. Our current standard variable rate is 4.79% and you will be advised of the new rate applicable to your loan when your deal comes to an end.”
I am having trouble trying to understand what this means...
For example if they come back and say closer to the time that their standard variable rate is 5.29% (for example – it could be higher/lower) what will this mean for me?
Will the rate that they apply to my loan in June 2012 be fixed for the duration of me having it or will it increase/decrease along with their SVR?
My wife and I took the mortgage out when we were eighteen and so this is a first for us.
The option of switching to another mortgage provider a no go with the LTV currently exceeding the value of our property. (Loan amount £99,896.10, property value now currently £90,000.00) i currently pay £580.00 a month.
Any help with understanding this would be much appreciated.
I hope you can be of help.
Yesterday I received a letter from my mortgage provider NRAM.
My five year fixed rate of 6.89% ends in June 2012.
In the letter it states...
“As detailed in you Offer of loan you interest rate is guaranteed to remain below our standard variable rate for the life of your loan. Our current standard variable rate is 4.79% and you will be advised of the new rate applicable to your loan when your deal comes to an end.”
I am having trouble trying to understand what this means...
For example if they come back and say closer to the time that their standard variable rate is 5.29% (for example – it could be higher/lower) what will this mean for me?
Will the rate that they apply to my loan in June 2012 be fixed for the duration of me having it or will it increase/decrease along with their SVR?
My wife and I took the mortgage out when we were eighteen and so this is a first for us.
The option of switching to another mortgage provider a no go with the LTV currently exceeding the value of our property. (Loan amount £99,896.10, property value now currently £90,000.00) i currently pay £580.00 a month.
Any help with understanding this would be much appreciated.
0
Comments
-
It sounds as if you'll be on a discounted deal. So SVR minus 0.5% or whatever.
Yes, it will fluctuate with changes in the SVR.0
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