Mortgage renewal, bit of advise please
Discussion
Morning all,
Brief outline, my mortgage is up for renewal in may, just coming out of a 3 year fixed at 4.99% I need to obviously get a new deal, its not on a huge amount approx £115k.
However, I am still a little confused as to what will be the best option, pros and cons etc. I like the fixed rate, appreciate it may be a little higher, but I prefer to know exactly how much each payment will be every time.
The mortgage company wont talk to me until march to discuss options etc, as it is constantly changing, which i understand, just looking for a bit of an insight into what people find works best etc.
With the way the whole economic thing is at the moment, are fixed rates generally higher or lower being offered at the moment.
Apologies if this seems a bit simple, just struggling to get my head round it all tbh.
Thanks a lot
Brief outline, my mortgage is up for renewal in may, just coming out of a 3 year fixed at 4.99% I need to obviously get a new deal, its not on a huge amount approx £115k.
However, I am still a little confused as to what will be the best option, pros and cons etc. I like the fixed rate, appreciate it may be a little higher, but I prefer to know exactly how much each payment will be every time.
The mortgage company wont talk to me until march to discuss options etc, as it is constantly changing, which i understand, just looking for a bit of an insight into what people find works best etc.
With the way the whole economic thing is at the moment, are fixed rates generally higher or lower being offered at the moment.
Apologies if this seems a bit simple, just struggling to get my head round it all tbh.
Thanks a lot
Lee,
You may find that the standard variable rate from your lender, which I imagine your mortgage will default to at the end of your fixed rate, is currently less than your fixed rate.
Given the fees etc that you'll be paying to fix a rate, and the widely held expectation of further rate cuts this year, it may be worth settling onto the variable rate and sitting tight for 6-12 months. I know that's what I'll be doing in April when my fixed rate (5.79%) ends!
Matt
You may find that the standard variable rate from your lender, which I imagine your mortgage will default to at the end of your fixed rate, is currently less than your fixed rate.
Given the fees etc that you'll be paying to fix a rate, and the widely held expectation of further rate cuts this year, it may be worth settling onto the variable rate and sitting tight for 6-12 months. I know that's what I'll be doing in April when my fixed rate (5.79%) ends!
Matt
Penny-lope said:
Eric Mc said:
First word of "advice" - the word is ADVICE
"Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Even on a Sunday morning...get a life "Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
.I have a life thanks and am currently living it quite well.
leeb said:
Eric Mc said:
First word of "advice" - the word is ADVICE
"Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Brilliant, great help. Thanks. "Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Fair point, it was a cock up, but come on, really?
It is a common mistake I see very often.
Don't you want to know how to ask the question correctly?
Eric Mc said:
leeb said:
Eric Mc said:
First word of "advice" - the word is ADVICE
"Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Brilliant, great help. Thanks. "Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Fair point, it was a cock up, but come on, really?
It is a common mistake I see very often.
Don't you want to know how to ask the question correctly?
(nearly missed out an apostrophe then, that was close!)
Eric Mc said:
leeb said:
Eric Mc said:
First word of "advice" - the word is ADVICE
"Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Brilliant, great help. Thanks. "Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Fair point, it was a cock up, but come on, really?
It is a common mistake I see very often.
Don't you want to know how to ask the question correctly?
leeb said:
Eric Mc said:
leeb said:
Eric Mc said:
First word of "advice" - the word is ADVICE
"Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Brilliant, great help. Thanks. "Advise" is the verb - I advise you to get a new mortgage.
"Advice" is the noun - You are asking for some advice.
Fair point, it was a cock up, but come on, really?
It is a common mistake I see very often.
Don't you want to know how to ask the question correctly?
(nearly missed out an apostrophe then, that was close!)
Whatever about missing apostrophes, you definitely left out a few capitals.
Back to the original question. What I do is:
At eight weeks before the renewal date, surf the net like crazy, looking at the websites of every bank and mortgage provider I can think of, and a good few I've never previously heard of. Also look in at comparison sites.
Throw in my lot with a couple of IFAs just in case they can do better (I haven't found that they can, but you never know).
Keep extensive notes.
Do calculations, focussing also on arrangement fees etc which can suddenly make a cheap % rate not so cheap after all.
Make lots of phone calls.
Curse when you miss out on a great deal by one day.....
Act quickly to complete forms and get an agreement if you are offered a good and suitable deal.
Keep fingers crossed.
Stay patient when it seems that ALL others involved in the deal are dragging their feet and losing every form you send them.
Complete deal.
Breathe sigh of relief.
Look up renewal date of next mortgage and work out when you've got to start process all over again.
At the moment, I would grab a fixed for as long as poss (dependent on individual circumstances, of course). However, my next renewal is in September so I think I may miss out. The rates in May might still be low.
At eight weeks before the renewal date, surf the net like crazy, looking at the websites of every bank and mortgage provider I can think of, and a good few I've never previously heard of. Also look in at comparison sites.
Throw in my lot with a couple of IFAs just in case they can do better (I haven't found that they can, but you never know).
Keep extensive notes.
Do calculations, focussing also on arrangement fees etc which can suddenly make a cheap % rate not so cheap after all.
Make lots of phone calls.
Curse when you miss out on a great deal by one day.....
Act quickly to complete forms and get an agreement if you are offered a good and suitable deal.
Keep fingers crossed.
Stay patient when it seems that ALL others involved in the deal are dragging their feet and losing every form you send them.
Complete deal.
Breathe sigh of relief.
Look up renewal date of next mortgage and work out when you've got to start process all over again.
At the moment, I would grab a fixed for as long as poss (dependent on individual circumstances, of course). However, my next renewal is in September so I think I may miss out. The rates in May might still be low.
Edited by andy400 on Sunday 4th January 11:35
Penny-lope said:
Oh goody goody, English lessons on a Sunday morning.
Now if you can just timetable in some Maths, a bit of PE...and maybe a little History please.
There is some history going on in the various WW2 threads if you want some extra Sunday morning education.Now if you can just timetable in some Maths, a bit of PE...and maybe a little History please.
Not all the contributions are by me, I hasten to ad.
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