When the end of your existing mortgage deal is approaching, seek advice and discuss your options with your mortgage adviser. If you are considering switching rates with Hodge, your mortgage adviser can process this on your behalf.
If you’ve submitted a rate switch request, we’re on it and will respond appropriately based on your existing product end date.
What to do when your current mortgage deal is ending
When your fixed-term mortgage deal ends, you have a choice. If you do nothing, your mortgage renewal will automatically revert to our Standard Variable Rate (SVR) which could be higher than your existing rate. Alternatively, you can remortgage to a new fixed-rate deal with Hodge or a different mortgage provider.
We’ll write to you and your original broker or adviser in advance of your existing fixed-rate deal expiring and explain your options. If you’d like a new mortgage deal with Hodge, you’ll need to complete, sign and return the enclosed application form before we can issue a mortgage offer confirming your new mortgage deal and payments. You’ll need to sign and return the mortgage offer for your new deal to take effect. Your mortgage offer will explain the terms.
What is Standard Variable Rate (SVR) mortgage?
A Standard Variable Rate (SVR) mortgage means your payments can go up or down according to changes in interest rates determined by us. You won’t have early repayment charges and you can overpay or redeem without penalty.
Switching early
Switching deals early might be possible. Exiting your current mortgage deal before the end date may incur an Early Repayment Charge (ERC).
Do you have to pay to switch mortgages?
There are no legal fees when you switch mortgages with us, and we don’t require any credit or affordability checks. You will need to pay any product fee associated with your new deal and it’s worth bearing in mind that new Early Repayment Charges (ERC) may apply.
If you think there’s been a significant change in the value of your property which impacts your loan to value, you may need to pay a valuation fee for us to instruct a surveyor.
Re-fixing your mortgage deal with us
If you’re keeping your mortgage with us, you’ll need to choose a mortgage deal from the same product family. For example, if you have a Residential Interest Only mortgage with us, you’ll need to choose another Residential Interest Only mortgage as from the same product range. Available rates will be provided in your application form.
Do I need a mortgage adviser?
If you know what mortgage deal you want, it’s up to you whether you take advice. We strongly encourage you to get financial advice to ensure you’re getting the best option for you and your personal circumstances. It’s important you understand the details of your new mortgage deal and the mortgage payments you’ll be expected to pay each month. If you’re not sure, speak to a mortgage adviser first.
You can complete and return the Rate Switch application form which includes the Execution Only Declaration Form. If you don’t speak to an adviser, this declaration confirms that you have chosen to proceed without obtaining advice.
If you choose not to take advice
If we can process your request, it’s important you know the implications of proceeding on this basis:
- You won’t receive any advice and/or a personal recommendation from us or an independent financial adviser as to whether the change to your mortgage meets your needs.
- If you wanted to, you won’t be able to refer a complaint about the suitability of this change to your mortgage to the Financial Ombudsman Service (FOS).
- You won’t be able to claim compensation through the Financial Services Compensation Scheme (FSCS) in relation to this change.
- You will still have the right to claim compensation from the Financial Services Compensation Scheme (FSCS) on other aspects of your mortgage.
More information
When will my new mortgage deal take effect?
Your new mortgage deal will take effect as soon as the existing rate ends. If you are currently on our Standard Variable Rate (SVR) then we’ll switch the deal as soon as we receive the signed mortgage offer. For more information please call 0800 028 3746.
When is the rate secured?
The rate is secured on receipt of the application. An offer document will be valid for three months and if you don’t return it within the validity period, a new offer document will need to be produced and the rate may no longer be available.
What if your rates decrease?
Even if a signed offer has been returned, you can still take advantage of any rate decreases before your rate switch deadline, by requesting a new offer document from us on the lower rate. Once the deadline has passed, you won’t be able to get the lower rate.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE