Mortgage fixed rate expiry

sm1976_2

Hope someone can help me as I'm hopeless with stuff like this.

I have a fixed rate mortgage through GE Money where the 4 year rate is due to expire in Jan2012.

The new rate from Jan2012 on the paperwork is shown as the barclays base rate (in 2008 it was 5.50%) plus 2.59% meaning on the paperwork it shows that my rate in 2012 would be worked out at 8.09% meaning my payment per month is due to increase by £50 a month.

But the new base rate at the mo is 0.5%. Should my payment decrease in Jan2012 due to the change in base rate?, ie would my payment be worked at 0.5% + 2.59%???

Does that make sense????????

kingstreet

If your key facts illustration and your mortgage offer say Barclays Base Rate (currently 0.5%) plus 2.59%, your reversion rate should indeed be 3.09%.

They quoted the base rate at the time to give you an idea of what it would have been at the time you took it out, purely for information purposes.