Remortgage Rates Question

[ryanbiller]

Hi,

If after a fixed term ends you decide to stick with the same mortgage company, are the new fixed deals you will be offered above or below SVR?

For example, if I take out a 3.2% fixed deal now that has a 5% SVR, lets say at the end of fixed SVR is actually 5.5% - will the new fixed deals be higher or lower than that if you stay put and roughly by how many percent points usually?

Thanks!

It’s not really possible to say unless you know what is going to happen to interest rates. Most of the time, the SVR will be more expensive than your fixed deal, but not always. If you have dropped into a new LTV band then you might be eligible for a better rate. When we remortgaged we stuck with the same bank and the new fixed rate options were cheaper than our old fixed rate as we had a better LTV ratio. I believe our previous fixed rate was 3.19% and the new one is 2.24% I think base rate was the same: 0.5%

The variable rate is just that- variable and will change with base rate. Yes fixed rates are pretty much always cheaper than SVR

If you’re about to remortgage get your house revalued to assess whether you can get a better LTV and therefore better rate. The rate you quoted looks quite high in the current market

Is there a reason why you’re not using a broker and shopping around with other lenders? You could get a better deal