B&B/MortgageExpress deal ending

VSynth

Hi,

we started buying a house in 2007 with a 100% mortgage from Bradford&Bingley/Mortgage Express.

Our 5 year 5.99% fixed deal comes to an end in August.

I think the mortgage side of B&B was nationalised so is now owned by the government?

What rate can we expect to pay after August?

kingstreet

First thing you need to do is look at Section 4 of your original Key Facts Illustration from when you applied for your mortgage. Alternatively, your mortgage offer will contain the same information.

The interest rate will be shown, together with a "thereafter" rate, or follow-on rate, as it's more commonly known.

This can be based on Bank of England base rate + a premium, or it could be the lender's standard variable rate.

Post back your findings, then we should be able to tell you more...

VSynth

Ok, here's the wording of section 4

Product:

100% 5.99% Fixed to 31/07/12 Free Val - a fixed rate until 31/07/2012

100%+ Variable Rate, currently 7.5%, then applies for the remainder of the term.

kingstreet

Ok. So we now need to know the 100%+ variable rate.

I've looked on the BBG site and can't find any reference to the current rate, so you're going to have to contact them, or await notification when you get to the end of your fix.

http://www.bbg.co.uk/

showders

We took out a mortgage around same time with mortgage express, ours was a 3 year fixed and ours reverted to bank base rate + 1.75%

If yours is same your in for quite a saving each month! Or a large overpayment if you can

VSynth

OK, to complete the thread I have just called B&B and their SVR is currently 2% above base rate so our new mortgage rate will be 2.5% making a saving of £184 a month.

We are going to overpay some and save some, happy days.

kingstreet

VSynth wrote: »

OK, to complete the thread I have just called B&B and their SVR is currently 2% above base rate so our new mortgage rate will be 2.5% making a saving of £184 a month.

We are going to overpay some and save some, happy days.

Sorry to appear pedantic, but that is the rate which applies to follow-ons on the "100%+" scheme you mentioned in post #3?

100%+ Variable Rate, currently 7.5%, then applies for the remainder of the term

I know things have changed, but I'd expect it to read "standard variable rate thereafter, or "Bradford & Bingley standard variable rate applies."

The way they've worded it suggests there's a different rate which applies to "100%+" mortgages.

Hopefully, it will be as you've said, but I don't want you getting a nasty unexpected surprise... :eek:

VSynth

Fingers crossed then, but they did quote the new interest rate knowing my account number etc. and said I could overpay since it would drop to 2.5%...they are sending the info in the post.

kingstreet

If you're happy, I'm happy.

VSynth

I'll let you know if I'm happy in August :D