End of a fixed rate mortage (Firsttime buyer)

crabbycrabcrab

I'm a first time buyer. Just took out a 2 year fixed mortgage.

I'm wondering what happens at the end of this? The rate jumps to 6%.

If im to do another fixed rate with my bank is there usually a fee? Or lets say i was to change vender at the end of the fixed rate is there usually a fee?

Im an absolute noob to this. I'm still learning. Sorry if it a silly question. ty

leccyblue

It depends what products are around in 2 years, when your fixed rate period comes to an end. Your bank will allow you to enter another fixed rate deal with them (providing you meet their criteria). They will most likely have deals that are fee-free (with slightly higher interest rates) and some that attract a fee (with slightly lower interest rates). It's down to you to work out, over the fixed rate period, which is cheapest.

Same is applicable with a new lender - but in addition there will be legal fees to pay to move to a new lender (sometimes the new lender will pay these). Also, moving to a new lender will mean a full mortgage application again.

crabbycrabcrab

The best answer i could of hoped for ty

Foxy-Stoat_3

My fixed rate ended a few months ago and the SVR was 1% less than the fixed one, happy days......I wouldn't worry about this until another 18 months then start to look around and make enquirers with your lender.

Jason_Bourne_2

I'm coming to the end of my DMP, I've a fixed rate with Halifax which ends in Jan. If I don't do anything do I go onto their standard rate with no early repayment charges? I don't want to go on another 2 year fixed as I'm hoping to move house in 12 months or so.

Cheers

Foxy-Stoat_3

Jason_Bourne wrote: »

I'm coming to the end of my DMP, I've a fixed rate with Halifax which ends in Jan. If I don't do anything do I go onto their standard rate with no early repayment charges?

Cheers

Yes...no charges as your not repaying anything early, just reverting to their SVR.

kingstreet

crabbycrabcrab wrote: »

I'm a first time buyer. Just took out a 2 year fixed mortgage.

I'm wondering what happens at the end of this? The rate jumps to 6%.

If im to do another fixed rate with my bank is there usually a fee? Or lets say i was to change vender at the end of the fixed rate is there usually a fee?

Im an absolute noob to this. I'm still learning. Sorry if it a silly question. ty

6%?

Accord, I presume?

You would have to ask the lender about any customer retention products it has for you to consider, or look at options available for remortgaging to a new lender.

Costs, fees and rates will vary and how to proceed will probably depend on your mortgage amount and the term of the offer you prefer.

ie - small mortgage on two year fix, probably best suited by fee-free product while larger mortgage on five year fix may best suit a lower rate product with a fee.

crabbycrabcrab

kingstreet wrote: »

6%?

Accord, I presume?

You would have to ask the lender about any customer retention products it has for you to consider, or look at options available for remortgaging to a new lender.

Costs, fees and rates will vary and how to proceed will probably depend on your mortgage amount and the term of the offer you prefer.

ie - small mortgage on two year fix, probably best suited by fee-free product while larger mortgage on five year fix may best suit a lower rate product with a fee.

aha yes. +rep

Have you used them before? Seem to of got a good rate. So I took it. I will definitely be looking for get another fixed rate after this.

kingstreet

I tell my clients about the 5.99% standard variable rate and explain that;-

- if something changes and they can't remortgage
or
- Accord has no customer retention products to offer them

they will be stuck on Accord's SVR, whatever that may be at the time.

So far, no-one has been prepared to make the first couple of years of their mortgage more important than the other 25 to 30, that I haven't used Accord in about five years.

Their admin issues are another problem I have deliberately avoided too.