3 choices for when your 5 year fixed-rate mortgage ends
1. SVR
Stay on your lender’s Standard Variable Rate (SVR) which is the rate you’ll automatically move to once your 5 year fixed-rate mortgage ends. WARNING – this rate is likely to be higher than your fixed rate and can lead to a BIG hike in your monthly payments.
2. Same lender, switch mortgage
Stay with the same lender but request that they switch you onto a different mortgage. They may offer you a like-for-like mortgage to your fixed-rate or something different. The aim is to secure a more affordable mortgage rate than the SVR, hopefully with better terms.
3. Switch lender AND switch mortgage
You could shop around for a cheaper mortgage with another lender. There are 1000s of mortgage products on the market offered by 100s of lenders. To get the best deal, it’s recommended to start this process at least six months before your fixed-rate ends. This will give you enough time to compile all necessary documentation and compare the options available.
Regardless of what you decide, it’s important to consider all factors, such as interest rates, fees, and repayment terms before making a decision. An independent mortgage broker, like largemortgageloans.com, can help you compare and choose the best option for your unique financial situation.
