Fixed rate length

Tim1111

I applied for a 5 year fixed rate deal from a high street bank, which has now completed. My mortgage account has been set up, but the fixed rate expires in 4 years and 8 months from completion.

I phoned them and got a vague answer that the deal has an expiry date, it isn't a fixed rate term  - although it was a 5 year fix that was advertised and I applied for. 

I appreciate there has been a few months between the application and completion, but should they be applying the fixed rate term from the application or the completion of the mortgage?

MWT

It isn't unusual to find there is an end-date in the small print on a fixed rate offer.

Solenoid

I didnt know they can do that 😯

getmore4less

If you look at many mortgage sites they have end dates these days.

eg Barclays 5 year rates are


5 Year Fixed Rate (until 31/05/26)

https://www.barclays.co.uk/content/dam/documents/personal/mortgages/CoreRangeCustomerRateSheet.pdf

(31 march effective sheet if looking at this later in the year it will change) 

MWT

Here is a current example from Barclays:

Note the fix is until 31st May 2026, so if you can move fast you might get more than 5 years, take a bit longer and it could be less.

bamgbost

Yup and it works both ways.

I remember our first mortgage was 2 years fixed...but actually ran for 1 yr 10months. On remortgaging it was a 3 year deal... and it runs for 3 years 2months!

Bobthebuildercanyoufixit

Hi All,
Do mortgage lenders prefer someone who is happy to do a fixed rate for 5years than if they went for 2years especially if there circumstance isnt the best so if you have PDL or a high DTI etc.
for instance the 2year fixed rate has a smaller APR than the 5year fixed.
For some reason i heard somewhere that your more likely to get the mortgage if your fixed rate term is higher. 
is this true? Or have i just made this up lol. If it isnt true i guess going with the 2year fixed is better because the APR is lower and also in 2years time it could be that the interest rates decrease.

Many thanks,