End of fixed rate queries

HillmanMinx

Hello

My 5 year fixed rate repayment mortgage, (25 year) with Halifax ends this September so I am currently looking into what to do next. Could someone put me straight on the following:

If I continue on my current mortgage, obviously I will go onto the standard rate in September and the payments per month will be significantly higher than they are now. However, year 6 of the mortgage will mean that I will be starting to repay a reasonable level of capital rather than the virtually all interest that I have been paying up to now. Each year that I continue will mean that I will be paying by proportion, more and more capital and less interest.

If on the other hand, if I decide to shop around and go for another deal, say a 3 year fixed rate with another bank or indeed take one of Halifaxes other products does this mean that I will have to start the interest payments from scratch again.

The RBS mortgage adviser that I spoke to seemed wholly unable or unwilling to answer this question even though I repeated myself four times.

I feel like I may be missing something here as surely if you switch mortgage providers every 5 years, you could end up, after 25 years, paying virtually all interest and make virtually no inroads into your capital repayments.

Please advise.

Many thanks in advance.

Mr_helpful

HillmanMinx wrote: »

Hello

My 5 year fixed rate repayment mortgage, (25 year) with Halifax ends this September so I am currently looking into what to do next. Could someone put me straight on the following:

If I continue on my current mortgage, obviously I will go onto the standard rate in September and the payments per month will be significantly higher than they are now. However, year 6 of the mortgage will mean that I will be starting to repay a reasonable level of capital rather than the virtually all interest that I have been paying up to now. Each year that I continue will mean that I will be paying by proportion, more and more capital and less interest.

If on the other hand, if I decide to shop around and go for another deal, say a 3 year fixed rate with another bank or indeed take one of Halifaxes other products does this mean that I will have to start the interest payments from scratch again.

The RBS mortgage adviser that I spoke to seemed wholly unable or unwilling to answer this question even though I repeated myself four times.

I feel like I may be missing something here as surely if you switch mortgage providers every 5 years, you could end up, after 25 years, paying virtually all interest and make virtually no inroads into your capital repayments.

Please advise.

Many thanks in advance.

The interest rate is key to saving on a mortgage. If you remortgage, you need to remortgage for the ammount you now owe and you need to shorten the term to 28 yrs that way you will finish on time. Contact independent broker that has a no broker fees option. plenty on google