Question about mortgage 'end of fixed rate'

nobodysdriving

Hi

sorry for being so 'thick' but I am wondering....

the mortgage I am taking out is with Kent Reliance (shared ownership mortgage)

it is a 3 yr fixed at 5.49% after this it says it will go to 6.58%

does this mean it will 'definitely' go to 6.58 or instead does that mean that 6.58% would be the SVR 'today' but the mortgage will revert to whatever SVR there is in 3 years time and hence it could be higher or lower?

if it will be whatever it will be in 3 years time then why bother stating 6.58 at all and not just say SVR applicable at the time?

I am planning on paying an extra £300 monthly towards my mortgage so that by the time I get to the end of fixed rate if I cannot afford to move mortgage my repayments should not be higher anyway.

jimjames

It probably does say somewhere it will be the SVR at the time but they have to show what it is now.

That seems a very high rate but SVR is unlikely to be lower in 3 years if interest rates are on their way up

nobodysdriving

jimjames wrote: »

It probably does say somewhere it will be the SVR at the time but they have to show what it is now.

That seems a very high rate but SVR is unlikely to be lower in 3 years if interest rates are on their way up

well it may be a bit high but 'beggars can't be choosers'

I only had 5% deposit and I am borrowing a large sum so I expected not to get the best deal out there, credit history is ok but not the best out there (no defaults or CCJs or anything bad, I just had lots of debts I had to clear prior to application and used to be overdrawn in current account, now that cleared too), also am single and earn £47K per year basic and 19K regular overtime (but they would only account for half of my overtime)