2 year fixed mortgage that is actually 27 months ?

2 year fixed mortgage that is actually 27 months ?

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Discussion

sjr-997

Original Poster:

310 posts

219 months

Sunday 9th May 2010
quotequote all
We are with C+G and took out a 2 year fixed mortgage in june 2008. Thinking that we revert to svr in June 2010 I called c+g to confirm

They said we don't revert until 1st september !

How can they do this ?

vinnie83

3,367 posts

199 months

Sunday 9th May 2010
quotequote all
Quite common. They often have set dates - eg C&G may release a '2 year' product today fixed until july 2012. If it's a product released a while ago, it may finish in april 2012 etc.


sjr-997

Original Poster:

310 posts

219 months

Sunday 9th May 2010
quotequote all
Don't they (the lender) have to clearly say the expiry date of the product ? Its not clear at all on the documentation I have (the offer) - I lodged a formal complaint with them because if I'm buying a two year product, I expect it to be just that, 24 months. That's the whole point of a fixed term contract isn't it ?

vinnie83

3,367 posts

199 months

Sunday 9th May 2010
quotequote all
The offer should state a date. Did you use a broker/IFA or go direct to the lender?

scotal

8,751 posts

285 months

Monday 10th May 2010
quotequote all
C&G offers are pretty straightforward and uniform.
Look at section 2 Description of this mortgage.

It will tell you in the last paragraph of that section what basis the rate is on
i.e "A fixed rate of XYZ% until 31 October 2010, followed by the standard variable rate"

Then look at section 4.

It'll say what your first monthly payment will be
then x monthly payments at a fixed rate of XYZ
followed by
xmonthly payments at a variable rate

2 year fixed rates fromthe likes of C&G usually are not for 24 months,they instead have a fixed end date. so your rate might last 22 months form completion, or as in your case longer.



scotal

8,751 posts

285 months

Monday 10th May 2010
quotequote all
anonymous said:
[redacted]
Pretty common.


anonymous said:
[redacted]
Loads of lenders do. Nationwide, Abbey to name 2.

Soovy

35,829 posts

277 months

Monday 10th May 2010
quotequote all
anonymous said:
[redacted]
Be grateful, it keeps people like you and me solvent.