Fixed Rate mortgage coming to an end

AndrewD · 13 Jun 2009 at 18:07

Hi I need some advice,

My 2 year fix rate of 6.4% is coming to an end in July which will be transfered to a SVR of 7.2%. However, will the 7.2% rate stay since the base rate has been reduced to 0.5%? Interest rates at the time were around 6% so hopefully would I be looking at a reduced rate come August or will I be looking at 7.2%?

Thanks.

SpeedFreak · 13 Jun 2009 at 18:13

I'd imagine your lender's sv is around 4% at the minute

JohnnyG · 13 Jun 2009 at 18:14

Your SVR will be a fixed % above the base rate as it is now ie 0.5%.
It's usually in the region of 1-2% on top of the bank's rate and your agreement will tell you exactly what it is

AndrewD · 13 Jun 2009 at 18:17

I'm looking through the mortgage information and it seems to only state what we would pay in August 2009 if the base rate stayed. I'm still looking though.

VonClinkerhofen · 13 Jun 2009 at 18:19

Mine ended in Jan (4.94%), Just did nothing and payments dropped by about £100pcm (2.5%). Can't find anywhere thats doing decent fixed rates for the LTV ratio that I currently have so just gonna sit tight for the next few months and overpay

Breeny · 13 Jun 2009 at 18:20

Same here, fixed rate ended last year in May, mine is around 3.5% at the moment, it's dropped about £250 a month!

Majago · 13 Jun 2009 at 18:49

Which lender are you with?

AndrewD · 13 Jun 2009 at 19:02

Alliance and Leicester, i'm contacting them on Monday to clarify, just interested in people's experience.

GarethDW · 13 Jun 2009 at 19:10

Their website shows their SVR to be 4.99%

http://www.alliance-leicester.co.uk/mortgages/mortgage-rates.aspx

Majago · 13 Jun 2009 at 19:10

That's who we're with as well.

It doesn't matter what the SVR was when you signed up, if you're follow-on product is SVR then you'll move onto their current rate which is 4.99%.

edit: seconds too slow!

JohnnyG · 13 Jun 2009 at 19:14

AFAIK it's only recently that banks have had SVR's which are so high above the base rate, his agreement might be as little as 2% above as he took it out 2 years ago.
Ours is 1.49% above when the term ends

Kitchster_uk · 13 Jun 2009 at 19:23

JohnnyG said:
AFAIK it's only recently that banks have had SVR's which are so high above the base rate, his agreement might be as little as 2% above as he took it out 2 years ago.
Ours is 1.49% above when the term ends

Depends on whether the bank provides a CAT standard mortgage, which not many do now. My SVR is 3.94 with HSBC.

Majago · 13 Jun 2009 at 19:23

JohnnyG said:
AFAIK it's only recently that banks have had SVR's which are so high above the base rate, his agreement might be as little as 2% above as he took it out 2 years ago.
Ours is 1.49% above when the term ends

Is your follow-on product a BB tracker though? The OP is following on to the lender's SVR which to a large extent is set at the lenders discretion.

DominicStar · 13 Jun 2009 at 19:28

I cant wait until November when mine comes to an end. Its current about 7% and isn't allowed to be more than 1.89% above Bank of England base after that.

Defcon5 · 13 Jun 2009 at 19:35

DominicStar said:
I cant wait until November when mine comes to an end. Its current about 7% and isn't allowed to be more than 1.89% above Bank of England base after that.

Blimey, how much will that reduce ut by per month? will you overpay to your current amount or just pay less?

Dup · 13 Jun 2009 at 19:37

DominicStar said:
I cant wait until November when mine comes to an end. Its current about 7% and isn't allowed to be more than 1.89% above Bank of England base after that.

I think we lost 2% on out 5.6% mortgage rate. Going to keep paing the same though if we can or put the difference in savings then overpay a lump sum when we need to.