Some questions about remortgaging

herman2811

We took out our first mortgage a few years ago and decided on a 5-year fixed rate, which is due to end in sept 2009. When it finishes, it will switch to the standard variable rate.

I was hoping for some advice:

We were hoping to pay off a lump sum of the mortgage when the current deal ends (as we don't want any overpayment charges), so presumably we will need to pay at least one month at the standard variable rate? Is that correct?

After we have paid off this lump sum, we would like to take out another fixed/tracker deal.... how long do these take to organise, ie when should we start the ball rolling, given we want it to start in september or october of 2009?

Also, my current lender is the Nationwide.... is it possible to haggle when arranging remortgages?! Presumably they will want to keep me?! Any advice on haggling with current or new lenders would be much appreciated!

Thanks in advance

dwsjarcmcd

herman2811 wrote: »

We took out our first mortgage a few years ago and decided on a 5-year fixed rate, which is due to end in sept 2009. When it finishes, it will switch to the standard variable rate.

I was hoping for some advice:

We were hoping to pay off a lump sum of the mortgage when the current deal ends (as we don't want any overpayment charges), so presumably we will need to pay at least one month at the standard variable rate? Is that correct? No, if you remortgage, then you only do so for the actual amount you wish to borrow. So say your current loan is £100k, you want to pay of £20k, then you effectively pay the lump sum when you redeem the loan

After we have paid off this lump sum, we would like to take out another fixed/tracker deal.... how long do these take to organise, ie when should we start the ball rolling, given we want it to start in september or october of 2009? I would start looking about 4 months before

Also, my current lender is the Nationwide.... is it possible to haggle when arranging remortgages?! Presumably they will want to keep me?! Any advice on haggling with current or new lenders would be much appreciated! No they won't haggle sorry. You either accept what they offer or you move away. No lender will haggle.

Thanks in advance

Hope that helps, David

whu

Hi
Are you sure that your lender will not allow overpayments during the fixed rate period as a lot allow 10% of the value of the loan outstanding each year?
In todays climate a lot of people are looking 6 months before their fixed rate deals come to an end - obviously depends on what the market is like at the time and what you think may happen to interest rates/mortgage rates next year(i know it is very difficult to predict!!) so i would suggest starting to have a look 6 months before as currently some lenders will allow you to book a deal that far in advance but that might change next year

herman2811

whu wrote: »

Hi
Are you sure that your lender will not allow overpayments during the fixed rate period as a lot allow 10% of the value of the loan outstanding each year?

Yes they allow us to over-pay up to £500 each month without charge, but I was referring to paying off a big lump of the mortgage.

herman2811

Thanks for the replies so far.... if anyone else has any opinions, they will be greatly appreciated.

the_geary

Nationwide allow you to overpay by a lump sum in the final month of a fixed rate (or tracker) mortgage.
Our tracker ends at the end of Sept and the advisor I saw earlier this week sai not to make any payments larger than £500 until Sept.
She also said if we were looking to go onto another tracker with them, to start the process about 2 weeks before the end of the current deal ~ to avoid going onto base rate. This was not taking any extra borrowing.

HTH