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Typically, preferential rate agreements on mortgages are set for between two and five years.

This initial rate could be a fixed, discounted or a tracker rate.

It’s likely that if, once your incentive period finishes you do nothing, your mortgage will revert to the lender's standard variable interest rate although in some cases it may revert to a variable rate which is linked to either the Bank of England base rate or even LIBOR. Details of the reversionary rate will be included in your mortgage offer.

As lender's reversionary rates tend to be higher than their preferential rates, there’s a good chance your monthly mortgage payments will increase.

It is ideal to look at your options six months before your preferential rate comes to an end.

If it has already finished give us a call and we will be happy to explore your options.