Understanding your options when your fixed-rate period has ended.
When your fixed-rate period comes to an end, the rate of interest you pay on your mortgage moves from a fixed rate of interest to a variable interest rate, known as the reversionary rate.
The reversionary rate is a tracker rate, the total rate of interest being a fixed percentage (a ‘product margin’) above a base rate.
We will write to you before the end of your fixed-rate period to notify you of your new variable interest rate and new monthly payment.
As an existing Kensington customer, we may be able to offer you a switch to a new fixed-rate product. Switching your mortgage is straightforward and there is no fee.
If we have any products you’re eligible to switch to, we will have written to you listing the products and explaining how you can receive a personalised illustration.
If you have recently received a letter from us containing this information and you have any questions, please refer to our frequently asked questions below.
We do not give mortgage advice, this means our customer service team will not be able to speak to you about switching mortgage product, nor assess the suitability of, or recommend any particular product to you. It's important you understand you are responsible for the product you choose.
If you want the protection of a personal recommendation, or have any questions about switching that are not covered in our frequently asked questions, you should speak to a mortgage broker or financial adviser. If you need help finding an adviser, you can find an adviser below.
When you move from one Kensington mortgage product to another, this is known as switching.
No, we do not give mortgage advice.
If you would like to receive advice on the suitability of any alternative mortgage product, you may wish to contact your mortgage adviser. If you don’t have an adviser, you might want to contact Like Mortgage Advice, who offer FEE FREE advice on Kensington products. Or if you’d prefer to find your own mortgage adviser you can visit Unbiased.co.uk, where you’ll find a list of advisers you can choose from.
No, we cannot increase the amount of the current mortgage or make any other changes as part of the product switch.
No, any product switch made in response to a letter you have received or an invitation to switch, will be made free for charge. If you, as a director of the company, chooses to get advice from a mortgage adviser, they may charge you a fee.
No, we cannot increase the amount of the current mortgage or make any other changes as part of the product switch.
No, any product switch made in response to a letter you have received or an invitation to switch, will be made free for charge. If you, as a director of the company, chooses to get advice from a mortgage adviser, they may charge you a fee.
If the company is currently in a fixed rate and would like the new product to start when the existing fixed rate ends, please make sure we receive the request to switch and the signed and dated Deed of Consent document(s) by the 12th of the previous month.
If the company is already on a variable reference rate, and would like the new product to start as soon as possible. We need to receive the request to switch product and the signed and dated Deed of Consent document(s) by the 12th of the month to make sure there is enough time to complete the switch and provide the company with the new payment information for the first of the following month.
This depends on the current circumstances.
If the company is currently in a fixed rate, then at the end of the fixed rate period the mortgage will change to the relevant linked variable reference rate. Notification of the change to the interest rate and the new monthly payment will be sent to you in writing before the new payment is due.
If the company’s mortgage is already on the variable reference rate, it will stay on this rate.
This depends on your current circumstances.
If you are currently on a fixed rate, then at the end of your fixed rate period you will change to the relevant linked variable rate. Notification of the change to your interest rate and your new monthly payment will be sent to you in writing before your new payment is due.
If you are already on a variable rate, you will stay on this rate.
For a product switch, the products outlined in the letter are the only products available to you at the present time.
Tick the relevant box on the Product Selection Form and return it to us in the prepaid envelope provided.
The mortgage products are not guaranteed to be available after the date that is provided in the letter. This means if we do not receive your Product Selection Form by the deadline date given in the letter, the products may no longer be available to you.
Yes, you must maintain all your monthly mortgage payments to qualify for a product switch.
Yes, the company must maintain all monthly payments to qualify for a product switch.
Your new mortgage product will take effect from the end of your existing fixed rate period provided we receive your signed documentation at least one calendar month before this date. Or, if you are already on a variable rate, your new product will take effect one calendar month after we receive your signed documentation.
No. The only requirement of the switch is that you continue to meet your contractual obligations and you return the Acceptance Form and Execution Only Declaration within the timescales stipulated.
For those customers who move to a KSR interest rate, one of the mortgage conditions will change to refer to the new way in which your mortgage rate is calculated. We've explained in your mortgage offer how the change works. All other Terms and Conditions remain the same.
Yes, we will write to you confirming the changes to your mortgage when we have received your signed documentation.