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T O P I C    R E V I E W
hammy0107 Posted - 21 July 2010 : 21:02:50
Hi all, before my question can i say that i went BR in 2008 and it was the best thing i have ever done. Anybody currently going through BR, trust me it isn't half as bad as you are thinking.

Anyway my question.

I went BR in 2008 and was discharged the same year. I was lucky enough to keep my house and have never missed a mortgage payment. My worry is that my current mortgage deal runs out in 2012, will i be hit with a huge interest rate rise as a discharged BR? or worse still could they refuse to give me a new deal?

Anybody been through this themselves, what happened with you?
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debtinfo Posted - 22 July 2010 : 21:04:41
Your mortgage will actually be for 25 or more years, it is usually just the first8 years that are fixed after that the mortgage continues, it just automatically goes onto the SVR, They wont ask for their money back, but they may not renegotiate it. The SVR is good for mst people at the moment as interest rates are low but the problem can be if you get stuck on the SRV when rates start going up
hammy0107 Posted - 22 July 2010 : 20:56:00
Thanks for your response, i am a little confused though.

I have had my mortgage since 2004 and never missed a payment. My current deal is a fixed rate until 2012, which means i am paying about 6% right now. When this comes to an end in 2012 are the mortgage company going to ask for their money back? i.e force me to go elsewhere for a mortgage. Or are they likely to allow me to stay with them but on other terms?
debtinfo Posted - 21 July 2010 : 21:08:48
Yes they can refuse to give you new deal, and you may have problems going elsewhere. Normally you would fall back to the Standard Variable Rate, Which at the moment might be more or less than you are currently paying

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