Mortgage question

[frick]

Dull, and possibly daft question, but it has been worrying me, so would be very grateful for any insight!
We have a fixed rate, 5 year mortgage which will come to an end in 2 years. What happens then?
So far we are managing our repayments well, and we set the rate low. Will we be likely to be looking at larger payments depending on interest rates (and other stuff I don't understand)?.

Have trawled google and confused myself further!

Thanks..and sorry it's boring!

It will be in your mortgage t&cs. Our reverted to 0.5% above base rate, so dropped dramatically years ago, so we've done very well out of it. I suspect that they'll have raised the % rate above base rate for all new-ish mortgages now though.

You will be able to take out another fixed rate with your existing lender or shop around and move your mortgage to another provider if they offer you a better rate.
Rates are likely to have gone up because there's nowhere else for them to go. However, given you'll have been paying your mortgage for five years you will owe a lower amount so may benefit from a lower rate because rates are better when you're borrowing a lower % of the property value.

Ours went back to the standard variable rate, which was lower than we had been paying.

Thanks wise women of MN.

As above, you can stick with your lender who will offer you a new fix/tracker or move. We recently did this and I ended up staying with my lender, although the rate was nearly a full 1% above the market leaders, because all the other companies would have charged nearly £3000 in the total fees (valuation, legal etc) which more than wiped out the difference in rate. Start looking 4-5 months before it runs out, as you can reserve a deal 3 months before you need it.

We changed our deal this year. We moved to First Direct, zero fees and a great rate - 2.59% for 5 years.