Please explain interest rates for me? I'm thick.

carameline

Hi there

My mortgage fixed rate ends in Jan, its currently 4.3% (I think). What happens when it changes? Does it go onto variable rate (I don't really know what this is).

Would somebody kindly explain what it all means?

Thankyou.

kingstreet

When you took out your mortgage, you would have received a "key facts illustration," or KFI, which provides the details of the rate during the initial period and the follow-on rate after that.

If you have the KFI, see section 4.

You will also have a Mortgage Offer and this will also set out the rate and the follow-on, when the initial period ends.

If the follow-on is the lender's "standard variable rate" you may need to find out the current rate, as it may have changed since the KFI/Offer.

Thrugelmir

Who is your lender?

ukflippy

There's a chance your interest rate will actually go down - I think Nat West's SVR (for example) is 4.0% at the moment.

Don't celebrate too soon, though - I'd still be looking for another deal, as you can get rates as low as 2% at the moment, depending on various factors.

kingstreet

The OP is with Halifax and the reversion rates, Standard Variable Rate and Homeowner Variable Rate are both 3.99%.

It's a shared equity deal and there is no prospect of remortgaging. It's SVR/HVR or see what Halifax product transfer options may be available...