What will happen with mortgage review in 5 years?

fitzykev

Hi I was lucky enough to get a mortgage fixed rate for 5 years. My broker said she will call me near the 5 years mark to review the mortgage. I get the impression somehow she can get the payments down come the time would I be right? 

dimbo61

Maybe and maybe not.
Crystal 🔮 ball time.
The long period of really low interest rates maybe over.
What you can do is reduce your debts.
Work out what LTV you might be in after paying the mortgage for 5 years.
For example my son is putting down a 10% deposit and will have paid off another 5% over the next 5 years 
Now with overpayments every month of say £500 he could have a LTV of less than 75% in 5 years time

fitzykev

I put a 66k deposit down and got a 97k mortgage. Paying 518 pounds a month  over 22 years 

ACG

Nobody knows. If the base rate is 6% then your payments are going up in 5 years time. But it will probably be cheaper than reverting to the standard variable rate. 

Its not a case that they will get the payments down, they will just ensure you are not paying over the odds for whatever is the going rate at the time. 

Everyone I see from now on (unless they had terrible credit and now dont) is going to be paying more on their next deal than they are on their current deal.