Why is there no set time period for my Fixed Rate investment?

When you make an investment into the Fixed Rate product your investment will be allocated to multiple loans. The Fixed Rate loans you invest in could be fixed for periods of 2, 3 and 5 years which will have completed at different times, and therefore the reversion date* for each loan will differ.

When a borrower comes to the end of their fixed rate and move onto the variable rate, your investment in that loan will also move to the variable rate. 

We expect your rate to be fixed for no more than 5 years but the investment may move to the variable rate well before this time period. The variable interest rate for the remainder of the loan's term will be set to  the Tracker rate offered at the time of reversion.

Please note also that borrowers are permitted to make capital repayments on their loan or settle their loan well before the end of the fixed term of their loan. In this scenario the funds invested in the respective loan would be credited to your cash balance.

 * When a borrower takes out their loan, we call this the completion date. The reversion date is calculated by adding the fixed term period to the completion date.

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