What happens after the initial interest rate expires?

If you remain with your lender, unless you’re on a life time tracker rate, your initial mortgage rate will revert to the lender’s standard variable rate.

All too often, people become complacent and simply put up with the new reversionary rate once the initial rate expires. They end up paying a lot more than they ought to be, simply because they don’t test the waters when they revert to the lender’s SVR.

It could be that :

  • there’s a feeling of gratitude and loyalty to the lender;
  • borrowers are confused about how to change mortgage providers;
  • a simple unwillingness “to go through that again.”

Whatever the reason, not checking out the most competitive contractor mortgages at the end of your introductory term can potentially cost you thousands of unnecessary pounds in a very short space of time.

We don’t wish any of our clients to be in that position. We contact everyone – as part of the service – at least 8 weeks before any preferential rate is due to expire. This gives you the opportunity to examine the options available at that time.

By comparing your current mortgage provider’s retention rate against remortgage rates on offer from other lenders, we can ensure the roof over your head isn’t costing you any more than necessary.

It just makes sense to transfer your loan to a more competitive mortgage if better rates are available from other lenders. Many don’t because of the hassle and fees involved.

In addition to us doing all the work for you, we can often arrange it so that the new lender agrees to pay all fees in return for moving your loan across to them. This typically includes the cost of the valuation and legal fees.

Alternatively, we can often transfer you to a more competitive mortgage rate with your current lender. This is worthwhile considering if you’ve built a relationship with them.

At Freelancer Financials, we’re always keeping an eye on market conditions and interest rate trends. This ensures that your interest rates are competitive from day one and throughout the life of your mortgage.


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