When fixed rate deal ends & you go onto SVR, do your payments increase or does the term lengthen?


My 2 year fix at 1.19% ends early next year. If I don't sign a new deal and just let myself default to the variable rate (6%), will the bank just keep taking the l monthly direct debit for the same amount that I currently pay (£700)? And let the length of the term increase? Or will they increase my monthly direct debit to keep the term of the mortgage (should be 5yrs 4 months at that point) the same? 

I will have about 45k still to pay off.  Value of house is 180k. I've worked out that unless I pay an extra £100/month, it will take me another year to pay off the mortgage. So trying to decide if I want to pay more or for longer.



  • penners324
    penners324 Posts: 2,569
    First Anniversary First Post Name Dropper
    They increase the payments so the term remains the same
  • 20vt-rs
    20vt-rs Posts: 674
    Mortgage-free Glee! Name Dropper First Post First Anniversary
    Payments will increase, but you could use the opportunity to re-mortgage onto a longer term to keep payments down, and if finances permit, overpay instead. Takes the pressure off.
    Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
    Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
    Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
    Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

  • thanks both! I'm looking at a 2 year tracker mibbe.  1.5% over base rate so at present would be 4.5%. 
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