Mortgage Advice

Aberdeen_Taff

My fixed rate mortgage comes to the end of it's 3 years this coming April and I'm hoping to get my new mortgage set up well in advance to avoid any last minute panic on my part!

What's the earliest I can sort my mortgage out to take over from my existing one? I'd also welcome any advice on what people think would be the best for me.

My house has recently valued at £330k and the mortgage will be about £129k over 22 years. I earn £35k and my wife about £16k and we like Capital and Interest so we know exactly where we are with how much it's costing us over a set period. That said I'd be willing to try a tracker if that looked better for us.

My current mortgage is First Active Fixed rate of 5.59 until the end of April when I would go onto the variable rate (which will be markedly lower than I'm just now I would imagine).

Am I better off staying on the variable for now as interst rates are so low or signing up again?

Thanks - hope I've covered everything but feel free to ask questions if not. I would look to go through a fee free mortgage advisor so advice there would be good too!

Comyface

First things first, check what your lender's SVR is. As you say, it's likely to be lower than what you're currently paying.

There's a recent post on here (not sure how to do links!) where someone remortgaged without checking and is now kicking themselves.

I would say 3 - 6 months before is the ideal time to arrange a deal to start when your old one finishes. If you know the current SVR that you're going on to, this will also help with your decision whether to do it now, or wait.

Trying_to_be_good

Good things - low LTV, salary multiples look OK if you have no other debts etc and good credit history

Other things to tell us - Capital and interest means a repayment mortgage rather than interest only, it doesn't affect whether it's Fixed/Tracker/Variable/Capped etc - that's a different question. It depedns whether you have the nerve to gamble on rates staying low (go for variable/tracker/stick with the rate you'll go onto for no fees) or whethe ryou think they'll rise significantly (go for a fixed rate) and how much slack there is in your budget.

But you can sort out a deal now for April with most places, by the time the paperwork is sorted out over Christmas.

Hope this helps

happybroker

It's my guess that your mortgage will go to a tracker at the end of the fixed rate period....I haven't seen a First Active deal that didn't.

In your mortgage offer it will tell you what margin over base you will revert to so it should be pretty straight forward to establish where you will be come April. If you are unsure speak to a good whole of market broker.

Fixed rates are low just now for people in your situation (assuming a clear history) and I don't see that you would have any problem securing the best deals out there but if you are considering a tracker then I would be a little surpsied if you could find one that would prove beneficial when the fees to switch are taken into account. I am, of course, a little short on info.

Aberdeen_Taff

Thanks for the early replies - no other debts at all and no credit problems at all either.

We like the stability of repayment mortgages and don't know enough about rate rises etc. so I guess if pushed I would plump for a repayment mortgage.

happybroker

ps...no harm in starting looking now.

Aberdeen_Taff

happybroker wrote: »

It's my guess that your mortgage will go to a tracker at the end of the fixed rate period....I haven't seen a First Active deal that didn't.

In your mortgage offer it will tell you what margin over base you will revert to so it should be pretty straight forward to establish where you will be come April. If you are unsure speak to a good whole of market broker.

Fixed rates are low just now for people in your situation (assuming a clear history) and I don't see that you would have any problem securing the best deals out there but if you are considering a tracker then I would be a little surpsied if you could find one that would prove beneficial when the fees to switch are taken into account. I am, of course, a little short on info.

My paperwork just says that when my fixed rate period ends I move onto the long-term rate for the remaining term and will pay a variable rate.

What other information can I provide you with?

happybroker

assuming this is the offer or the key facts illustration is should tell you what the long term variable rate is and how it is arrived at.