Buy to Let Mortgage fixed rate ending

CocoGab

My Buy to Let Mortgage is fixed with the Mortgageworks at 6.29% The 5 year fix is due to end soon, the agreement states 'a variable rate which is 2.24% above the Bank of England Base Rate currently 5% thereafter,' . What is the new rate likely to be? ( I don't know what themortgageworks rate is, I do know the BBR is 0.5%) Also I missed out big time by tying myself to this deal 5 years ago and wonder whether it's worth just sticking to the new rate. My mortgage is about 55% of the property value.

sammyjammy

Well if it's as you say it is then it'll be 0.5% plus 2.24%, 2.74%. Why would you need to know the Mortgage works rate?

CocoGab

I presumed that I would have to pay their current standard variable rate plus the BBR. (Though the way it reads it does sound as though the variable bit refers to the BBR rather than their rate)

kingstreet

It reverts to the Bank of England base rate + 2.24%, so 2.79% at the moment.

The 5% is mentioned because at the time you took out the mortgage, the base rate was 5%, so it was warning you about the possibility of a higher follow-on rate.

No-one was expecting base rate of 0.5% back then.

If the mortgage reverted to TMW standard variable rate, it would have said that.