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Question: My 3 year fixed rate mortgage ends in october, what happens then?

(Posted by: Elle Bee on 2010-09-09 12:55:10)

My partner and I have a 3 year fixed mortgage on our flat which is due to come to an end in October. We have been told that the rate will go to a variable rate automatically however we were wondering if it would be possible to go with another fixed rate? We do not have any equity in the property or anything and no savings to put towards a new mortgage so we were hoping to just carry on with another fixed rate with our current lender. Does anyone know if this is possible?? Thanks folks. To "JustBecause " maybe you should read the question properly...we did have a fixed rate but it now coming to an end like they all do at some stage. Read the question properly before you make stupid comments you moron!!

Posted by: Spock (rhp) on 2010-09-09, 13:04:29

You ring up your lender and ask for what you want. know in advance that you may not get it -- they're under pressure too and commonly want what you don't want. {he he -- the Americans who respond are funny in their ignorance.}

Posted by: JustBecause on 2010-09-09, 12:56:36

You can try to refinance to a fixed rate. Otherwise I suggest you go out and buy a lot of KY Jelly and start lubing. Your fault for not going with a fixed rate in the first place you fail.

Posted by: boomn4x42 on 2010-09-09, 12:59:33

In order to get into a fixed plan you would have to refinance... and that is going to involve several thousand dollars in closing costs... the good news is that you should be able to apply those closing costs back into the loan so there is no money out of your pocket. For example, if your mortgage is $100,000 and you refinance, you'll get $2,000 in closing costs, so your final mortgage would be $2,000. However, with that being said.... interest rates right now are lower than they were 3 years ago... when your mortgage goes variable, your interest rate will probably go down... not up. There is no telling what interest rates are going to do, but I would say you should be safe, at least for another year or so, to keep your variable rate and stay with it for a while. Some people say that they can't go any lower... but that is also what they said when I bought my last home and interst rates were about 6% (they are now about 4.8%)

Posted by: Steve D on 2010-09-09, 12:59:36

Call your lender, but if the lender believes that interest rates will be going up, they will probably not want to provide you with a fixed rate and no equity.

Posted by: Anna Marie B on 2010-09-09, 13:03:42

It will only go to a variable rate automatically if you don't request another fixed rate from your lender. Generally they will send you a letter offering you the opportunity- that's how it's always worked for us anyway!

Posted by: Kernow Lady on 2010-09-09, 14:21:48

Ask to go on another fixed rate. If they refuse phone around and see if you can refinance with someone else. You will have to pay valuation fees though.