Switch to a new mortgage deal

Your interest rate is set for a fixed period. After the term of the product comes to an end the rate will revert to our Standard Variable Rate (SVR). 

• If interest rates decrease then you would not benefit from a reduction in your monthly payment.
• You're tied into the deal, which means if you no longer want the product or the mortgage during the term of the deal, you could incur an early repayment charge.
• For fixed rate mortgages, an early repayment charge is due if you repay all or part of your mortgage before the end of the set fixed period. The charge is 3% of the amount repaid. However, you can make an overpayment of up to £1000 each year without penalty.     

• You're protected from interest rate rises for the period of the fixed rate, as your payments will not go up regardless of any interest rate rises. 
• The fixed rate gives stability for a set period of time, allowing you to budget.
• You could take your fixed rate deal with you if you move home.  This is subject to conditions and we’ll tell you more about this in your mortgage illustration.

2 year deal

Risks

• You’ll only have certainty over your monthly payments for a 2 year period.
• If you typically choose a mortgage with a fee you may pay 3 fees over a 5 year period (1 fee for each 2 year deal period).

Benefits

• Your monthly payments on a 2 year deal will typically be lower than your monthly payments if you choose a 5 year deal.

5 year deal

Risks

• Your monthly payments will typically be higher if you choose a 5 year deal rather than a 2 year deal.

Benefits

• Your monthly payments won’t increase for 5 years, so you can budget for the long term.
• If you choose a mortgage with a fee you’ll only pay 1 fee over the length of your mortgage deal.