When should I start looking for another mortgage?

booboomania

Hi there,

Our current mortgage fixed rate expires on 28th February 09. This is a together mortgage with Northern Rock, and having talked with them today, they are advising that we go to a whole of the market lender as currently switcing to their SVR means a £250 monthly increase in payments.

Anyway, the main question I have is whether now is a good time to start looking for another mortgage or is it too early?

In addition our property is currently worth around £225,000 and our mortgage balance is £203,000 - hopefully just enough for a 95% mortgage although the way prices are going should we secure something now to make sure?

Thanks in advance for any advice.

koexelek

You need to work backwards.

The date you are aiming at is Feb 08, which is 5 months away.
The average mortgage offer is valid for three months, though some are for six.
There is no point applying for a mortgage unless you can draw it down in time.
I agree that it's a good time to try and get one approved now if you can, as i can only see your equity getting eroded further in the short term

thejoose

Definitely, look now. The only people who would wait and see are those who want to pay more.

You cannot lose by reserving a rate now with no money committed. You add the fee to the loan so that if you never take the loan, you never payy the fee. If something better comes along before your renewal date, move over. If things get worse, you'll be so glad you booked something early on.

booboomania

Great - thanks for the advice. Will appraoch a whole of market adviser this week and get things moving.

:beer:

herbiesjp

Did you take out an unsecured part/loan on the mortgage as well?

Be careful, as if you have, and take the mortgage awat from NR you will be put on to a really high rate of interest for the unsecured loan if you leave it with NR