What happens at fixed mortgage expiry

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Martin84

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Hi, I have a 1 year fixed rate mortgage with BoI. Im just wondering what happens when the 1 year period is up? You just tell them that you want to fix for another 1 to 5 year period at prevailing rates? And a switch to variable is the default if you dont contact them? Do they do any checks? Would they ask for payslips or anything like that?
 
You'll automatically roll onto the variable rate. Not sure if they contact you the month before with options. I'd definitely be asking about alternate rates at 11 months. No, no checks/payslips
 
If you're switching "internally" at end of fixed rate (say into another fixed rate) is it considered a "full switch"? I.e. do you need to use a solicitor or is it internal, as it's the same bank?
 
username123 said:
If you're switching "internally" at end of fixed rate (say into another fixed rate) is it considered a "full switch"? I.e. do you need to use a solicitor or is it internal, as it's the same bank?
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Same bank then it's literally confirming what rate is on offer and what you would like to switch to. May have to confirm in writing/by email and that's it! Easy peasy
 
You shouldn't need a solicitor to switch internally. However, I understood that only some banks offer the ability to switch mortgage products. That is, when you come off the fixed rate that you could choose what rate to go onto instead of only being able to go onto the regular variable. Being put onto the basic variable rate may be a thing of the past.

I'm with Ulster Bank and it was a point made to me that we could easily switch mortgage products with them but that ability wasn't available from all the banks. It should be in your contract though. We did it using a tip someone else posted up on AAM which has saved us a chunk of change :)

You should hope that they send a letter out to you in advance of the end of the fixed term asking you what product you'd like to switch onto, otherwise contact them around the end date and ask is there a product switching form available to you.
 
They have to write to you 60 days before your fixed rate expires and that letter should set out other interest rates available. Then you contact them to let them know which one you want to move to.
 
Hanata said:
They have to write to you 60 days before your fixed rate expires and that letter should set out other interest rates available. Then you contact them to let them know which one you want to move to.
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Is this compulsory?
 
Last edited by a moderator:
Yes - see press release from the Central Bank last year:

"For consumers with fixed rate mortgages, lenders are required to inform their consumers at least 60 days in advance that they are about to come off their fixed rate and provide details of the new rate applicable from the expiry date. The lender should provide information on other possible options that may be available to the consumer."
press release
 
Martin84 said:
Do they do any checks? Would they ask for payslips or anything like that?
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No don't worry about that. It's a simple procedure. If you didn't get notification your rate was ending then contact them now to ask what your options are.
 
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