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Mortgage Charter: Going interest only for 6 months, but fixed term ends during- what will happen?
RODNEYKK
Posts: 2 Newbie
Hello! I am looking for some help please- I am looking to take the interest only mortgage charter 6 month break with Natwest, however my 2 year fixed term ends in 4 months- at that time will I continue paying the same interest (currently 2 something %) or will it change to the SVR as the fixed term ends even if I am in the interest only period?
I have done lots of googling but cannot find an answer to this one anywhere. The Natwest website offers me the opportunity to choose my deal for the end of the fixed term deal, before taking the interest only option but it does not say what will happen if I don't? Do I change my deal (to more like 6/7%) first or just go ahead now and it will keep me at the lower rate? That seems too good to be true! Any help would be greatly appreciated as I cannot find it anywhere, and was hoping that this 6 months might mean calmer rates at the end to choose from- don't know if I am just dreaming there! Thank you!
I have done lots of googling but cannot find an answer to this one anywhere. The Natwest website offers me the opportunity to choose my deal for the end of the fixed term deal, before taking the interest only option but it does not say what will happen if I don't? Do I change my deal (to more like 6/7%) first or just go ahead now and it will keep me at the lower rate? That seems too good to be true! Any help would be greatly appreciated as I cannot find it anywhere, and was hoping that this 6 months might mean calmer rates at the end to choose from- don't know if I am just dreaming there! Thank you!
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Comments
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This temporary swop to interest only should no affect how your mortgage product works.
Your current mortgage product will end as targeted and you will go on to standard variable rate unless you select a new rate to go on to.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
There is nothing that would suggest the rate remains unchanged, merely that you will be paying only the interest due during the 6 month period.If you don't pick a new product then that will be the SVR...A good question to ask Natwest directly, but I would not expect a different answer...0
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It's an important distinction between "moving onto an interest-only product" and "only paying the interest component of your existing product".0
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