taxed to death Posted November 6, 2006 Share Posted November 6, 2006 Hello all I've been surfing HPC for a while now and have finally decided to take the plunge! I have a questions on tie in periods for fixed mortgages, many home buyers are choosing to fix their mortgages at a lower rate for 2-5 years, what happens when the fixed period is up? tradionally how long would you have to pay the mortgage providers standard variable rate or could you be a rate tart and fix again without suffering massive exit fees. taxed to death! Quote Link to comment Share on other sites More sharing options...
enworb Posted November 6, 2006 Share Posted November 6, 2006 Normally your rate will be fixed for a set period of time and will then your rate will increase (in most instances) to their vaiable rate for the remainder of the tie in. The redemption penalties and length of time will depend on the lender. Penalties normally taper off the longer you have the loan. For instance, 5% of the outstanding mortgage for the 1st couple of years and then 1%-2% for the rest. That's how mine works anyhow Quote Link to comment Share on other sites More sharing options...
Twig Vase Posted November 6, 2006 Share Posted November 6, 2006 It depends on your deal, mine is a 5 year fixed at 4.99%, after then it moves to the SVR, there is no tie in after 5 years so i will just switch to a better deal straight away Quote Link to comment Share on other sites More sharing options...
DabHand Posted November 6, 2006 Share Posted November 6, 2006 It depends on your deal, mine is a 5 year fixed at 4.99%, after then it moves to the SVR, there is no tie in after 5 years so i will just switch to a better deal straight away .. a better deal.. That's some optimism. Quote Link to comment Share on other sites More sharing options...
Twig Vase Posted November 6, 2006 Share Posted November 6, 2006 .. a better deal.. That's some optimism. Interest rates could go down Quote Link to comment Share on other sites More sharing options...
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