Re-mortgage now?
Discussion
My fixed term is up in April 2018.
Does anyone know which lenders I could target for a re-mortgage "quote" now (6-7 months ahead of time) which would still be valid/honoured by April/May, or is it far too soon?
Is this good practice, assuming interest rates are only going to rise between now and April 2018?
Or, is it not a case of just getting quotes, but actually arranging now? What situations might arise where arranging a remortgage so far ahead of time might go wrong? I presume job loss or similar would invalidate the mortgage and I'd be back to square 1, minus any arrangement fees?
In terms of the details I need to start applications, I presume I can speak to the current lender to find out what the balance will be at the end of the fixed term, and what the exact date of that is?
Thanks in advance for any advice.
Does anyone know which lenders I could target for a re-mortgage "quote" now (6-7 months ahead of time) which would still be valid/honoured by April/May, or is it far too soon?
Is this good practice, assuming interest rates are only going to rise between now and April 2018?
Or, is it not a case of just getting quotes, but actually arranging now? What situations might arise where arranging a remortgage so far ahead of time might go wrong? I presume job loss or similar would invalidate the mortgage and I'd be back to square 1, minus any arrangement fees?
In terms of the details I need to start applications, I presume I can speak to the current lender to find out what the balance will be at the end of the fixed term, and what the exact date of that is?
Thanks in advance for any advice.
I'm in a similar position. Hopefully this isn't dumb (I must admit I've not thought this through too much), but is there anything stopping us re-mortgaging (effectively taking out a second mortgage) now, before the existing deal finishes? Payments for two mortgages could be serviced with lump sum received from new mortgage, or by savings. Old mortgage paid off when ERCs no longer apply. In my case I'd be looking to re-mortgage at 30-40% LTV, repayment.
I suppose the Q would be whether the two sets of interest payments for a short a period + current available rate would be less expensive than the (presumably more expensive) rates available in ~6 months. Unless I've missed something? May fall foul of affordability tests?
I suppose the Q would be whether the two sets of interest payments for a short a period + current available rate would be less expensive than the (presumably more expensive) rates available in ~6 months. Unless I've missed something? May fall foul of affordability tests?
66Elan said:
Nat West and HSBC remortgage offers are valid for 6 months although only of use on longer fixed terms. On a 2 year fixed rate you would only benefit for a 20 month period.
Exactly what happened to me - got the mortgage offer in June, didn't complete until November, so my 2 year fix is only actually 21 months. Had no idea it worked like that, just assumed it would be two years from the start of the loan. Fix ends next August/Sept, and the ERC would be 1%, so I'm hoping that rates don't move too much in the next 6 months.As mentioned above, some will do 6 months. You could do a mortgage comparison then run down the list phoning them and see if they are 6 months in advance or 3 months, then see if it’s worth it versus what you think the rates will do over the next few months.
I think the BoE base rate will go up tomorrow, but that will be the only rise for the time being, you’d have to guess whether mortgage providers will pass that increase on and what products might be available in a few months
I think the BoE base rate will go up tomorrow, but that will be the only rise for the time being, you’d have to guess whether mortgage providers will pass that increase on and what products might be available in a few months
^plus the mortgage application fees which can be in excess of 1% of the loan amount and any adviser charges.
That said remortgage products often offer free valuations an legal fees which can help keep the switching costs down.
In answer to the original question youre find plenty of lenders who will produce an offer/agreement in principle subject to valuation /underwriting which is valid for 6months but these are pretty worthless and not the same as a formal offer which typically would need to complete in 3 months. Although I have had a case which took an obsurd amount to of time to the extent I had to provide the recent 6months bank statements prior to a new offer.
That said remortgage products often offer free valuations an legal fees which can help keep the switching costs down.
In answer to the original question youre find plenty of lenders who will produce an offer/agreement in principle subject to valuation /underwriting which is valid for 6months but these are pretty worthless and not the same as a formal offer which typically would need to complete in 3 months. Although I have had a case which took an obsurd amount to of time to the extent I had to provide the recent 6months bank statements prior to a new offer.
I use this spreadsheet
http://locostfireblade.co.uk/spreadsheet/Index.htm...
for comparing two mortgage options.
It surprises me that sometimes adding fees to the mortgage is actually cheaper over the fixed term, so never assume anything!
From the website domain name I'd say the author is a petrolhead like us, so if he happens to read read this, thank you!
http://locostfireblade.co.uk/spreadsheet/Index.htm...
for comparing two mortgage options.
It surprises me that sometimes adding fees to the mortgage is actually cheaper over the fixed term, so never assume anything!
From the website domain name I'd say the author is a petrolhead like us, so if he happens to read read this, thank you!
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