fixed rate ending in december what now?

mose_2

Hi all, My fixed rate will be coming to an end in december, What i want to know is what happens after this, I dont really want to take another fix out as we should be moving in july next year. What will happen to my repayments for the six months or so until we need a better, bigger mortgage?

We will need a mortgage of around £120,000 as we will make about £80-90k on our flat, with a joint income of £40,000 is this possible?

Cheers all.......:)

N9eav

Your interest will fall back to the SVR, Standard variable rate. This will be higher than your fixed, so expect an increase in payments. The best thing to do would be speak to your lender in Oct and see what they can do for your future. Try others as well. There are flexible deals out there..

MortgageMamma

Your mortgage payment may not only revert to standard variable rate, it could revert to bank of england base rate + ?% or even the London Interbank Offered Rate +?% - check with your lender.

It heavily rumoured that there will be another bank of england base rate rise before the end of the year, leaving the base rate at 6%. SWAP rates, the rates that drive fixed rate mortgages are still gradually increasing.

I think you should consider addressing your mortgage now, by applying for a competitive remortgage product and completing in december as required.

Some lenders allow you a 3 month period to complete once your mortgage is offered, some allow a 6 month period. If you take this course of action you need to pick a lender who is happy to let 6 months elapse from date of offer to completion.

A good broker will know who these lenders are and how to facilitate this.

MM