It's the same risk with any bank offering a Standard Variable Rate.
Once you finish the term of the fixed interest rate, you can move if you wish.
Traditionally, a large percentage of Homeloan customers on Standard Variable Rates have not moved, regardless of what rate their Bank applied, and hence the Banks continue to charge high SVRs.
If I was considering a fixed interest rate period, I would be asking myself:
- why am I doing this (is it cheaper than the current SVR, or is it for security against a potential interest rate increase) ?
- what happens if I need to break out of the fixed interest rate during the term of the fixed rate ?
- if I had to refinance to another lender after the fixed interest rate period ended, how much would that cost and what's the risk of me having to move ?