Completed today…5yr fixed showing as expiring Oct 2027.

Poquito

Hi all, hope everyone is well.
so, my daughter has completed on her home purchase today but on her mortgage portal it says the 5yr fixed rate ends Oct 2027. She applied for an amendment to the mortgage offer in Oct 2022 as the initial sale fell through (the initial mortgage offer would have expired today, but was extended by the lender to April 2023) 
I was under the impression the 5years would start today. Can anyone shed any light on why this will expire Oct 2027 so we have a better understanding.

thanks in advance 

(yes she will contact the lender in the coming days to understand, but is moving today, so am asking for my understanding, thanks)

Nailer99

This is common. For many lenders the "5 years" is dated from the date of your mortgage offer, not from the start of the mortgage.

This could work in your daughter's favour as hopefully mortgages will be cheaper in 2027, and she'll be glad to escape that deal.

Poquito

Hi @Nailer99
thank you for your swift reply! Appreciate you helping us to understand this, much appreciated! Cheers!

kingstreet

Many mortgage products have end-dates, not from completion.

She chose a product with an end-date of 31/10/2027 which would be loosely-termed a five year fix.

As an example, our suitability report, issued soon after the submission of the mortgage application says, for example, "Accord Mortgages fixed rate product at 5.01% for two years (until 30/04/2025)."

jonnypb

I got a 2 year tracker, but it's actually 28 months and not 24 months.

flashg67

Happened to me - offer in Oct, completed following Feb but the fix ended in Oct (TSB)

ACG

Check the mortgage offer.  But it is not uncommon for most 2/3/5 year fixed rates to be 2/3/5"ish" years. It is normally within 3 months either side. 

Poquito

Hi all, appreciate all the replies! It makes sense now. Thank you for the illustrations/ examples. 

Sncjw

My fix ends on the date I completed and moved in. Wonder why mine is different then.

kingstreet

Sncjw said:

My fix ends on the date I completed and moved in. Wonder why mine is different then.

That's unusual. Even lenders doing x months from completion, usually use the month-end so a completion date of 15 December 2022 would see a five year fix end on 31 December five years hence, not 15 December 2027.

Lenders like Precise, Kensington, Nationwide and a few others have fixed rates for a number of months from completion but most have fixed end-dates to assist with securitisation as they want the entire tranche of lending on those terms to end at the same time.