A helpful reminder from your mortgage broker may be just what you need to save yourself a whole lot of trouble.
The FSA (Financial Services Authority) is very happy with the way rules for renewing two or three year home loans are working out, but mortgage brokers tell a different tale and are less impressed, saying that borrowers are confused and could be out of pocket over the system.
When your short-term mortgage is coming to an end it would be helpful if you could rely on your lender to send you a reminder. Although some do, theyre not actually under any obligation to send you this information. They do have to inform you that the interest rate is to alter, with the obvious result of an increase in repayments. Unless, of course the rate comes down, which would probably be as likely as a flying pig? The rate theyll be offering you will be their standard variable rate, which is likely to be something like 2.25% higher than the rate youve been on.
If you find yourself in the position that you have actually inadvertently switched to SVR, youll need to do something about it as soon as possible. For some-one with a 100,000 loan, switching from a standard...
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