Fixed Mortgage Being Ended Early By Lender

one_dull_guy

We took out a 5 year fixed rate mortgage in 2022 with Skipton. We've just been told that the mortgage rate will be ending soon, 6 months early. The new rate is going to triple our repayments. Are Skipton allowed to do this? I was under the impression that the mortgage was a contract that couldn't be breached without financial implications.

la531983

Are you 100% sure it is "early"? Very few five year rates actually last for exactly five years. Some are more and some are less. My last 5 year one was actually 58 payments.

Same applies to two year ones, three year ones etc.

Check what you actually originally agreed to

born_again

Are you sure that this is not just a advice letter with their new rates for you taking out another fixed rate with them, which will start when the old rate ends?

Which they do tend to give 6 months notice on.

I know our lender Co-Op do this.

Isthisforreal99

Whatever end date is stipulated in the mortgage offer is when it will end.

As above, many products will not be excactly x years especially if you secured a deal in advance.

ACG

Take a look at your mortgage offer. It will have a definitive end date rather than saying for 60 months.

If you complete quickly from making your application, you might get a little over 5 years. If you take a while to complete, then you might have a little under 5 years. At 6 months early, it suggests your completion took quite a long time.