Change my fix?

typeractive

Hi all,

I am in the process of buying a place. At the moment for my mortgage promise (AIP) I have applied for a 3 year fixed mortgage. I'm a FTB and wanted the stability. Now I am thinking that I might be better to go for a 2 year fix with the way interest rates are. Undoubtedly they will go up, though I think it might be a while before they go up. This being the case I was thinking that after 2 years fixed, I could possibly fix on a more competitive rate, rather than in 3 years...is this making sense? I want stability though I don't want to be paying over the odds for too long.

The thing is - I have applied for the mortgage (and been accepted) for the 3 year fix. Can I change this prior to the house purchase / after the lender's valuer has been out to look at the property? I'm paying £250 for the valutaion already. LTV is 75%.

I know my mortgage advisor is sick of me due to me exploring all the possibilities - though I can't help it, I'm picky and want to ask lots of questions to ensure I am doing the best thing.

The rate I have is 4.98% for a 3 year fix.

The 2 year fixes (with same lender - A&L) use a % for their fees. This also works out less than the fees I will be paying. Bear in mind I will have already paid for the valuation.

Maybe i'm too late?

Cheers for any advice.

_Andy_

Personally I'd stick the the 3 year - I don't think 2 year fixes offer great value, plus you're assuming rates will be great after 2 years and I don't think that will be the case - on what are you basing that assumption?

typeractive

Thanks Andy

I'm just bassing my assumption that it might be cheaper to remortgage in 2 years time as opposed to 3 years, as the rates may not be quite as high / market a bit more settled perhaps? I know it's always going to be a crystal ball issue - I'm just wondering if I've done the right thing.

Circumstances might change within these 3 years - e.g. change of career etc, and I might want to rent the property out. Not sure if I'll be able to do that with it being a set mortgage? Maybe I can?

typeractive

So can anyone answer my question? Am I too late to change to a 2 year fix?

_Andy_

Yes you should be able to change product.