What happens if I do nothing?
You will usually be moved to a ‘standard variable rate’ (SVR) mortgage.
As the name suggests, this means your mortgage payments can go up or down. The interest rates are often higher for SVRs than they are for other types of mortgages.
How do SVR mortgages work?
Lenders set their own rates, so they are not all the same.
The rates do not have to follow changes in the base rate set by the Bank of England, but they are often influenced by it. This means, if the Bank of England announce an interest rate rise, the SVR rate is likely to rise too.
But the lenders look at other factors too. Such as how much it is costing them to borrow.
I have a bad credit score. Can I get a new mortgage?
Lenders will see you as more of a risk to lend to if your credit file includes:
This does not mean that you cannot get a mortgage. But you may have to pay more in interest and fees.
Find out more about how credit scores are worked out.
I am on a debt solution. Can I change my mortgage?
This depends on the debt solution.
If you are bankrupt: Lenders are very unlikely to lend to you, during your bankruptcy and while it is on your credit file.
If you are on a repayment solution, such as a debt management plan (DMP): Lenders will see you are making reduced payments through your DMP which can mean it will be harder to take out credit. But, as this shows you dealing with your money worries and paying what you owe, they may lend to you.