Financial Glossary of Finance Terms Extended Tie In

When a early repayment charge applies after the introctory offer this is known as extended tie in period. Originally this type of mortgage offered a low interest rate to help first time buyers with the initial costs of setting up a home. They prove unpoplar though as after the initial period the rate can be the lenders standard variable rate for some time.

Mortgages Expert usually advises against mortgages with extended tie in unless for example the applicant is a professional ( solicitor , accountant etc. ) who expect to see a significant rise in the salary once qualifying for example.