What happens at the end of your fixed-rate mortgage?
Fixed-rate terms are predetermined durations agreed upon between you and your lender, typically lasting from one to five years.
Upon the conclusion of your fixed-rate term, your loan typically transitions automatically to the standard variable interest rate, unless you've provided alternative instructions.
This transition can affect your monthly repayments and financial planning. It's crucial to prepare in advance and consult with our mortgage broker about what your new interest rate and repayments might be and what your options are.
Transition to Standard Variable Rate:
As your fixed-rate term nears its end, your loan typically moves to the standard variable interest rate automatically, unless otherwise instructed. This rate will differ from your fixed rate, impacting your monthly repayments. At Investors Mortgage, we ensure you receive timely reminders via email before your fixed-rate term expires, keeping you well-informed and leaving plenty of time to act before the expiry date.
Repricing with Your Current Lender:
You have the option to negotiate repricing with your current lender. Our team will handle negotiations on your behalf, utilising our insight and expertise to secure favourable terms for you.
Refinancing to a Different Lender:
While interest rates play a significant role in selecting a loan product, it's essential to consider the "true cost of switching." Despite enticing cashback offers or advertised lower rates from other lenders, there are various fees and charges associated with setting up a new loan and discharging your old one.
Seek Professional Advice:
We can provide a comprehensive assessment into the actual costs involved in changing lenders and the potential savings. Contact us today to explore your options and secure the most advantageous mortgage deal possible.
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