We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Is this allowed?
jo.anne
Posts: 79 Forumite
I have no idea about mortgages, but I do know that every 2 years my fixed mortgage comes up and I go online and fix it again, my current fix is due to end in June this year and I had already chosen a new mortgage to start when that ends. I choose this about 1 month ago and it showed what my repayments would be, I have now had a letter from RBS to say my mortgage product is linked to the Bank Of England Base rate and the issued offer would be going up by 0.5% . It doesn't show me my new repayment but just says the amount will only be known when my mortgage completes. Now my mortgage is very low compared to some but it had already gone up so are the within their rights to increase it again 0.5% when I had already chosen at the rate shown?
0
Comments
-
If you chose a fixed rate product - no.
If you chose a tracker product - yes.
Which was it? You mention previous/current fixed rates but then "I had already chosen a new mortgage to start when that ends." Not "I had already chosen a new fixed rate?"I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
You put the answer in your question.. It's linked to the bank of England base rate. That means when that goes up so does your interest rate and when it goes down, the same.0
-
It sounds like you have chosen a tracker rate mortgage so yes the rate will increase, and decrease with Bank of England Base Rate changes.
If you want a fixed rate for the mortgage term then you need to choose a fixed rate product.0 -
I had chosen a new fixed rate for 2 years.0
-
Any reason why you fix for only 2 years each time?
Also can you show us the letter or confirmation. Of what you took out taking out personal details.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £55,819
Cc debt free.0 -
Are you sure it's not a fixed tracker? Mine is 1.09% fix but it's a tracker so what's fixed is the amount added to the BoE base rate so it will go up or down with the base rate but always only be 1.09% above it.jo.anne said:I had chosen a new fixed rate for 2 years.Officially in a clique of idiots0 -
You couldn't have. As you mentioned in your comments it's linked to base rate.. No fixed rate is linked to base rate.. You need to check the paperwork confirming what you signed up for.jo.anne said:I had chosen a new fixed rate for 2 years.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.8K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.4K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards