Re-mortgage deal longer than advertised

caspol

Hi re-mortgaging with current bank as my deal ends in June. I went for 2-year fixed at good rate as plan to pay it off at the end - only 3yrs, 10mths left. However when I got the paperwork yesterday it stated that the 2-year deal would end in August 2019!! Anyone any idea why this would be as it means essentially paying for two extra months?? thanks

glosoli

Pretty much every mortgage product has an end date, such as two years and three months or five years and three months. It is just the way the system works, in terms of how lenders manage the funds they recieve from the markets, and also including time to allow the mortgage product to drawdown.

David_White

Lots of people miss this quirk in fixed rates because they don't check their original paperwork.

A lot of lenders stagger their fixed rates in this way for the above posters reason. If you check your original Key Facts Illustration it will no doubt state what the monthly payment is over a period of 26 months.

ACG

Some lenders have set end dates which is more or less 2 years where as others do a set 24 months from completion.

Horses for courses, if it does not work find a new lender or choose a deal with no ERCs if they have one. It is what it is, nothing you can do about it.

Thrugelmir

caspol wrote: »

Anyone any idea why this would be as it means essentially paying for two extra months?? thanks

If it's a "good" rate then you should be happy. You are going to pay someone for those two months aren't you?

getmore4less

caspol wrote: »

Hi re-mortgaging with current bank as my deal ends in June. I went for 2-year fixed at good rate as plan to pay it off at the end - only 3yrs, 10mths left. However when I got the paperwork yesterday it stated that the 2-year deal would end in August 2019!! Anyone any idea why this would be as it means essentially paying for two extra months?? thanks

if you max out the overpayments using the cash you have ready to pay it off the amount owing in 2 years will be very low and the interest on that will be quite small.

if you have a really good rate you can probably get a better rate in savings so it could become 2 months extra interest.


many lenders on their web sites include the end dates for the deals.

given your time fram and the ability to pay off in 2 years you may be better with a ERC free mortgage for the 2 years if you will have more then the max overpayment available.