What Happens When My Fixed Rate Period Ends?
Clear Credit Solutions is a multi-award winning credit repair service. Most consumers are unaware of what is on their credit report whether they are looking for something simple like a new phone plan or a brand-new property. Credit defaults, court judgments and clear outs can impact and stop any kind of finance application from moving ahead. These negative listings are not even discovered until a new finance application is made.
Services like ours can assist in removing these listings so clients can proceed with their finance but not everything can be removed. That is why after discovering something on a credit file the next step is to call Clear Credit Solutions. Not only do they offer the best advice and an award-winning service, but useful articles like the ones below are available throughout their extensive website.
Australian homeowners who have opted for variable interest rate home loans are at risk of budget fluctuations due to the changing market conditions. This is because not only could their monthly, weekly or fortnightly repayments increase or decrease but so too will the amount of interest charged by lenders. Therefore Australian households must be prepared for any changes to their spending when it comes to repaying a loan with an adjustable rate of interest.
By opting for a fixed mortgage rate, Australians can assure that their repayments remain consistent over the agreed period. This simplifies budgeting while providing protection against any fluctuations in variable interest rates during this time. However, be aware that exiting early before the term ends may incur exorbitant break fees; so think carefully if you’re considering refinancing with another lender.
For borrowers who opted for a fixed-rate home loan prior to the Reserve Bank of Australia’s recent announcements, this could be a saving grace. Their interest rate and thus their mortgage repayments should stay consistent throughout the entirety of their fixed rate period – meaning far less financial stress!
Nevertheless, when the introductory period ends, your mortgage may switch back to its standard variable interest rate. This is typically higher than most lenders’ discounted variable rates that are advertised as incentives for new customers. As well as this, given the current cash rate increase, this could be even more expensive than anticipated – meaning you’re in danger of suffering from bill shock and financial hardship if you don’t take proper precautions!
A bad credit history can make it difficult to get approved for a loan, but there are steps you can take to improve your chances. At Clear Credit Solutions, we specialize in helping our clients fix bad credit, so they can obtain the financing they need. We’ll work with you to remove negative listings from your credit file and help improve your score. Contact us today to learn more about how we can help you when it comes to credit repair!
Source: Jasper
Clear Credit Solutions are the credit repair experts, we help to remove default and negative listings off of credit files quickly and efficiently. If you have bad credit and are looking for expert help, then please do not hesitate to get in touch with us today. Call 1300 789 783 or fill out an application form and fix bad credit!