Fixed rate mortgage

[nightpark]

I fixed my mortgage at 3.8% for five years just before the rate started to rise. Someone said to me given the current turmoil that the banks always have the option of rasing the rate even fixed ones. Does anyone know if that is true.

 

[ClubMan]

I doubt it but read the terms & conditions of your loan agreement to check.

 

[noodle]

Had a mortgage offer in July at fixed rate for 2 years at 4.79%, and variable after that. We are just about to draw down on it this month, and out of the blue a letter came saying that it had increased to 4.89%.....
Is this normal/allowed - and why would it change this week?

 

[ClubMan]

That's different - they generally (always?) reserve the right to review a fixed rate offering between approval and drawdown. This is not the same situation as the original poster's.