How does this new 6 month cooling off period on interest only products work?
Like many people at the moment, I’m worried about the implications of the recent rate rises as my current fix ends in December and we have a high LTV as first time buyers.
The government has come out today to announce this new deal with the banks, part of which is that people moving to an interest only deal will be able to revert to their ‘previous’ deal within 6 months with no penalty. That sounds potentially helpful but how does it work if your deal is ending? Could I move on to an interest only deal in December when my current fix ends, stay on that for 6 months until June, and then revert to my original product albeit at the higher rate (because the good fixed rate is over), but then also be free to shop around for whatever the best deal is at that point? Hopefully by then rates are a bit more sensible.
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