Saw an interesting article a while ago that was about a person who did not tell his lender that he wanted to change to variable interest rates when the maturity period expired.
The person had thought that it would automatically become a variable interest rate on a loan if you do not contact your lender
Something that then turned out not to be true, but they tied up the loan for an equal period of time again. Which at first glance may seem logical but which is not when you look a little closer at it all.
One thing to be clear about is that banks like when their customers have secured loans with them. After all, there is a much less risk that a customer will then transfer his loan to someone else, which means that the bank is more secure income. Therefore, it has also been the case that the loans were previously normally extended at the same time as the previous period.
If you have not said that you want to change your loan and the bank then automatically binds you, it is difficult to get out of it all without paying for it
The person the article was about had now had a significantly higher interest rate for 5 years than he had intended.
However, now it has started to get better on this front and several lenders have started to make the loans flexible instead if there is no contact with the borrower. This has to be seen as a positive, since there is no problem then to tie up his floating loan himself if that is what you really wanted. This is much easier than getting a fixed-rate loan. Then one might think that there should always be a contact between the bank and the borrower when the term of the bond ends. But that’s another thing.
The conclusion of this is that you should check out what applies to your particular lender. Not getting the kind of interest you want just because you are not in control of the situation is not very good.