End of Mortgage Term, What Happens?

When you take out a mortgage you agree to a mortgage term, what happens at the end of the term will often depend on your mortgage type and the terms and conditions of your mortgage.

Coming To End of Fixed Term Period Of A Mortgage
Many people will arrange a mortgage in two parts often having a fixed term at a lower rate, then at the end of the term the rate often will change (sometimes up, sometimes down) as the mortgage will switch to a variable rate. If you see a large increase in your mortgage payments once out of the fixed period you may consider remortgaging your property to find a lower rate.

Coming To End Of Term On An Interest Only Mortgage
When you reach the end of an interest only mortgage you will still owe the principle amount you owed at the beginning of the mortgage. When you reach the end of an interest only mortgage you have three options, first option is remortgage and borrow the money again on a new mortgage, option two is buy the property outright with savings or some other investment instrument you may have in place, option three is to sell your property and move house. In some cases your age may impact your options, First Choice can help you explore these different options and talk to you about the best options for your individual circumstances.

Coming To The End Of Your Repayment Mortgage
You now own your house outright, the property is now solely owned by you with nothing left owed to the bank, obviously this is an ideal situation, which again gives you options, the first is you can enjoy not having to make repayments on your mortgage for a while, alternatively you can use your equity in your property for future finance, giving you some excellent rates on borrowing money for almost any purpose.

First Choice Mortgages are a leading UK mortgage broker with over 30 years` experience in providing mortgages, so If you are a first time buyer, renewing your mortgage (thinking of switching), downsizing, consolidating debt / refinancing, borrowing extra money for home improvements, buying again or investing, you have come to the right place, complete our simple online enquiry for and talk to one of our qualified mortgage advisers.

First Choice Finance compare mortgages / remortgages and home loans from multiple providers using only one form, our lenders include big banks as well as a specialist lenders not available direct, enabling us to help when others may not be able to, we have mortgage options for over 55`s, people with adverse credit as well as mortgage for people who are self-employed or have variable incomes

What happens when my fixed term mortgage ends

- In many cases it is often advisable to remortgage as your mortgage rate will often increase as it goes onto the variable rate and you will often not have any early repayment charges to pay. Contact First Choice and see if we can save you money by remortgaging, all quotes are free and you will be under no obligation to proceed with any mortgage offer with may give.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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