Time to secure a new mortage deal

alocin20

Hi,
just wondering how far in advance you can apply /secure a new mortgage before your fixed rate is due to run out?

I am due to remortgage in Feb 10 and anxious to try and secure a good interest rate as early as possible.

latecomer

I dont think any companies will hold a rate for you from now until Feb next year. I think the longest that they will normally hold a rate is about 3 months but it will probably vary between companies. I'm sure some of the IFAs who frequent here will be able to provide a more accurate answer.

happybroker

between 3 and 6 months is the usual validity period for a new mortgage offer.

Some lenders are currently actively looking to "lose" borrowers though by offering the incentive of waived early repayment charges though if you are with a "high street" lender then this probably won't apply to you.

alocin20

Thanks very much. I hope there are still good rates to be had then.

alocin20

I am currently on an interest only mortgage. took out a mortgage for 220k and now have to remortgage in feb for 200k. my partner and i have just been made overpayments.

Happybroker, just a thought... reading this site I think we got swindled by our last mortgage broker who charged us a £500 fee telling us that he didnt make any commission out of the deal, but only by selling insurances...which we didnt take out, and therefore he charged us the £500. Im sure he lied to us now.
We also had to pay £1500 booking fee which covered solicitors too.

Im determined not to be done over again this time so starting early. Thanks
Nicola

unite79

Nicola, look at the KFI or Mortgage Offer, both wil lshow commision paid to broker - It is true that some lenders do not pay commision - it is also true that some brokers charge in addition to getting paid a proc fee - As long as everything is up-front its fair i think.

alocin20

Thanks, I will check this out. Very helpful to know.

happybroker

some brokers will charge a higher fee if no insurance is being sold, I don't think it's any secret that insurance is where the money is for us guys and wether you are comfortbale with that is very much a personal thing, it's certainly not my style as I wouldn't expect to be treated that way myself.

you should have been issued with an initial disclosure document (assuming you took the mortgage after the start of November 2004) which will give information broadly covering how the adviser would be paid and, as per above, mortgage offer and the KFI would also disclose any commision due.

alocin20

I will check to see if we got this last time. I let my partner do most of the organising /reading so didn't go through the fine detail of the mortgage as I will be doing this time round. We did a fixed 2yr in feb 07.

Can you please tell me... does the broker have to provide you with the disclosure/KFI or does the mortgage company send this to you in the post once the application has been made?

happybroker

broker provides the disclosure, it's purpose is to give you enough information for you decide if his/ her services are right for you, they should also provide you with a kfi and then the lender's mortgage offer basically mirrors the kfi, confirming the information there in including commision etc.