Interest rate for remaining term of loan advice 3 November 2022 at 9:02PM in Mortgages & endowments 9 replies 351 views

fitzykev

Will I be locked into this? A fixed interest rate of 3.89% that will apply from completion of the loan until 30th Nov 2027 followed by the society's standard variable rate. Currently 5.54% for the remaining term of the loan. (Offered on the 8th aug) 

MorningcoffeeIV

You'll be locked into the fixed rate, unless you pay to exit.

The SVR will be whatever it is at the time. If it's not attractive, you'd normally look to remortgage, if you're able. 

Edi81

The SVR may or may not be higher at the time the fix finishes. This is standard and will be fully explained in the mortgage information document. 

fitzykev

But in 5 years if I can remortgage I can go fixed rate again? 

Lewis7498

Yes you can switch to another fixed rate. Normally lenders allow you to switch penalty free between 3-6 months before the fix finishes. So you don’t really need to pay attention to the SVR unless you are coming off that fix you are on, it just rolls onto that if you do nothing

MFWannabe

It’s standard wording 
you choose what you want to do nearer the end of current fix (3-6 months before) 
Current fix is a really good rate by the way 👍

fitzykev

Yes I was very lucky I got in just before the government crashed the economy. My only worry now is the mortgage company Might pull the offer before I get my completion date. I will never be as happy to see money leave my bank account the day my first payment goes out

penners324

The government didn't crash the economy. Covid and Ukraine war did that

picky123

penners324 said:

The government didn't crash the economy. Covid and Ukraine war did that

What he said, the narrative that interest rates would still be at 1% if liz had not got in is so wrong. USA have increased rates 0.75% two months in a row, their rates are higher than ours. The problem is the rate should not have been below 1% for the last 13 years.

fitzykev

Did the chancellor and prime minister not force the bank of England to have to buy up all the goverment bonds to hold up the economy? The bank of England told them what would happen if they went ahead with it and they did anyway.  But that's another conversation