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Mortgage minimum repayment term longer than fixed rate

littlesaint
littlesaint Posts: 392 Forumite
edited 5 June 2012 at 9:11AM in Mortgages & endowments
I saw a good three year fixed rate deal with the Newcastle Building Society. However, the small print says it is a minimum five year deal. I can't see any information on the website explaining this. Does this mean that you are locked into SVR for two years or does it just mean you are locked into NBS products for a further two years?

Comments

  • ACG
    ACG Posts: 24,896 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If its a 3 year fixed then the remaining 2 years would usually revert to the banks SVR rate - however with this being probably your biggest ever purchase - its worth double checking with the building society when its back open.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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