FTB advice fixed term rates

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Seen mortgage advisor yesterday and have DIP for Halifax. Since I've came away I have more questions which I feel a bit silly for not asking at the time, but I have no experience in this and it's all new to me. Does DIP expire? There is no property's near me that I'm currently interested in so waiting for something to come up. What usually happens after fixed term price ends, will mortgage per month increase? I don't know the exact rate and how long the fixed term was for for the mortgage she was saying would be most suitable, I'll have to double check which I feel stupid for but it was first appt and a lot to take in. Hope someone can help in the meantime. TIA

Our agreement in principle was valid for 30 days. Our full mortgage agreement was valid for 6 months.

I really wouldn't worry. Mortgage rates change all the time, so when you come to make an application the advisor will advise you accordingly at the time.

When we were provided with an illustration of our mortgage it stated their standard rate which it would default to after fixed term ends. It also showed payment amounts for higher rates if they were to increase after the fixed term.
I’d ask for this info as it should have been provided.

@Gillian1980 was that with Halifax? I doubt I'm going to find somewhere I love within the 30 days so do you know what happens if it expires so you have to go back to mortgage advisor and get another DIP?

And sorry if this is really stupid but what's the difference in DIP and mortgage agreement as mortgage agreement wasn't mentioned yesterday? Thanks

What usually happens after fixed term price ends, will mortgage per month increase?

After the fixed term expires you will generally go on to the lender's standard rate, which will be higher than the fixed rate. However, you can usually remortgage and go on to a new fixed rate deal at that point.

Ours was through an independent broker, mortgage with Nationwide.

They would just look at renewing it I believe, but rates may vary and your situation (ie debts etc) changing may also impact.

Thanks all for your advice it's a bit daunting getting your head round everything!

Does DIP expire? Yes it does expire. Ours was valid for 90 days

What usually happens after fixed term price ends, will mortgage per month increase? At the end of the fix, your mortgage reverts to the bank’s SVR. It depends as to whether the payments increase or not. ATM, interest are still quite low so most banks SVRs will be higher than your current mortgage interest rate. When your current fix gets to about 6 months before expire, I would start to look at what is available out there as you can remortgage and have a new mortgage lined up to start in 6 months. That way you lock in a good mortgage way in advance. That is if you want to have another fix or you decide to go a variable

You should also look at your own bank’s retention products before your current fix ends as they can also be competitive which means you just switch to the new mortgage with your current lender without having to go through credit checks or affordability checks. We were able to switch to one of our bank’s retention products at the end of our 1st fix as even our mortgage advisor wouldn’t anything other products to beat the retention rate on offer. However, 2nd time round we left our bank and remortgaged with another bank as we were borrowing more and we were convinced that we wouldn’t pass our bank’s affordability checks (used the bank’s affordability calculator on line). So assess your situation when you have about 6 months left which is plenty of time for you make a decision based on your circumstances at that time

I don't know the exact rate and how long the fixed term was for the mortgage she was saying would be most suitable,... This information should hopefully be on the DIP. If not, just ask them, you shouldn’t feel stupid. As you said yourself, 1st time, tonnes of information to process; you are now processing it

Good luck with your house hunting!