Fixed rate ending soon

Tedlad123

Hi all, I currently have a 5yr fixed rate (2.29%) ending in March 2023 and I can 're-fix' in January or go onto the SVR of 5.69%.
Obviously a new fixed rate would be best but I 'm planning to repay the whole mortgage (£51K) in July/August when I'll be made redundant, I will be just short of 54 years old.

The original mortgage had a proposed finish date for when I was 60yrs old and if redundancy wasn't looming I would have again fixed the rate.
So, my question is, when/if I decide to revert to the SVR, does that rate of 5.69% apply to the current balance outstanding or the amount of the original mortgage (£100K) 5yrs ago?

Thanks

MattMattMattUK

Tedlad123 said:

Hi all, I currently have a 5yr fixed rate (2.29%) ending in March 2023 and I can 're-fix' in January or go onto the SVR of 5.69%.
Obviously a new fixed rate would be best but I 'm planning to repay the whole mortgage (£51K) in July/August when I'll be made redundant, I will be just short of 54 years old.

The original mortgage had a proposed finish date for when I was 60yrs old and if redundancy wasn't looming I would have again fixed the rate.
So, my question is, when/if I decide to revert to the SVR, does that rate of 5.69% apply to the current balance outstanding or the amount of the original mortgage (£100K) 5yrs ago?

Thanks

Just the outstanding balance, they do not charge you interest on what you have already paid off.

Tedlad123

Yeah, that's what I thought. Was going to fix the rate on a short term deal to reduce my payments slightly for the next 7-8 months but then the early repayment charges would nullify any cheaper monthly payments, but that would be a 'new' mortgage I presume and that would lead to new application and I would then have to disclose my pending redundancy and so wouldn't be an option.

Maka344

Just do a tracker for the remaining time. There’s no ERC and you can exit it without issue and it’ll be cheaper than the SVR.