Could someone explain the mechanics of this

in Mortgages & endowments
4 replies 277 views
Hopefully someone can explain how this works, so still toying with different options for when my current mortgage fixed rate product ends on the 2nd April this year and i move onto the SVR. When looking at options to stay with current lender can anyone explain how/why if i choose another 2 year fixed rate deal as part of a product transfer the end date would be the 2nd June 2025 and not April... Thanks in advance


  • ACGACG Forumite
    22.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Lenders offer fixed end dates a lot of the time. I think it is something to do with funding. 
    Its not uncommon for a 2 year fix to be anywhere between 22-26 months. 
    I am a Mortgage Adviser
    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.
  • penners324penners324 Forumite
    2K Posts
    1,000 Posts Fourth Anniversary Name Dropper
    Mortgage companies buy chunks of Mortgage funding on the interbank market which will have a fixed end date. 
    They align their products to match that end date 
  • dunstonhdunstonh Forumite
    112.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Mortgages can be funded by a number of different sources.  One is mentioned above.   Most of these sources of funding make the money available for a period of time using fixed dates.     So, the tranche of the mortgage deal will match those dates irrespective of the day you actually complete.      

    Lenders are allowed to round to the nearest year when discussing the deal.   Typically, if you complete early within the issue of that tranche, you will get longer than the headline fixed term.  If you complete later in the issue of that tranche you get shorter than the headline fixed term.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Dannyboy13Dannyboy13 Forumite
    3 Posts
    Second Anniversary First Post
    Thanks for your replies everyone sounds like there is nothing new here or unusual which is reassuring. 
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