How long does it take to remortgage?

waterbaby

Hello,

I began a 25 yr mortgage last April, fixed for 2 years. When the fixed bit ends, I expect I will be moved to the SVR.

So, I expect that I will want to remortgage in 14 months. It's a fair way off yet I know - but when should I ask my lender what they can offer me after April 06, and start seriously checking out other options? How long does it take to process a remortgage?

Doglover88

not bein an expert id say a couple of months before your 2yr deal ends.. keep a watch of them every month or so, so that you know what the deal you get offered is like compared to that of one a yr ago.
good luck

Aussie

Better to start a little bit early, you can always delay, but if you start too late, you can't speed it up! and you may have to pay the higher rate on your original mortgage until the new one comes into effect.

misters_2

This was a good question, cause i was also thinking this just the other day.

herbiesjp

A couple of month before is a good yard stick to go to your own lender to see what they can offer, and see what else is on the market.

tallpaulunderwood

Waterbaby,

Just to be sure, I assume your current mortgage has no termination penalities that go beyond the end of the fixed term ?

Have been caught out myself with this.

Also make sure whoever is doing your remortgage checks the best DAY of the month for the new mortgage to come into effect. If you get this wrong you MAY find that you could be paying two mortgages for a couple of weeks. Depends on the particular agreement terms as usual !

Would you be aiming for another fix, so to say, or a discount or suchlike ?

TP

12 years 1 month & counting.

waterbaby

I don't think there are any redemption penalties after the 2 years, but thanks for asking because now I will make sure. Nothing like being on the ball is there.

When you say the 'best day' - you would want one to start the day after the other one finished wouldn't you? Or doesn't it work like that?

I would prefer to still have a fixed rate, but I would consider anything else if it was good value. I'd rather pay a little more for the security of not having rates rising like a rocket.

I read somewhere of somebody getting a 25 yr mortgage, fixed for 25 yrs at 3%, wouldn't that be wonderful. Maybe it was abroad. Don't worry I am not expecting to come across that!

My boyfriend and I have started to overpay from January, by 31%. We hope to have it up to 33% before long. It's a good feeling!

cloud_dog

Most mortgage / re-mortgage offers are valid for 90 days (unless there is a specific end date on a special offer); therefore would suggest looking three months before the end of your current offer.

A couple of things worth bearing in mind:

* If / when you apply you can specify the start date, so you can actually apply earlier whilst categorically stating (in writing would be good) the actual transfer / start date of the new mortgage (not req'd if staying with the existing lender)
* Some lenders are willing to transfer you before the actual end date without incurring penalties - ask them
* What actual date can you re-mortgage, and if the date is the 1st of the month, then what happens to your monthly direct debit payment (assume it is paid on the 1st of each month), i.e. will they refund it or is it lost. THe reason for this point is that I was with Skipton and if I trasnferred on the 1st my monthly payment would not be refunded, so transferred on the last day of previous month (ended up paying old and new lender for interest on one day but was a lot cheaper than paying for the full month).

cloud_dog

craigb_3

should take a maximum of 1 month with lender who arranges val and legal fees free. my lender does not reference employer or current lender as long as info needed upfront is there. if more than 1 month they are not doing job right

payless

craigb wrote:

should take a maximum of 1 month with lender who arranges val and legal fees free. my lender does not reference employer or current lender as long as info needed upfront is there. if more than 1 month they are not doing job right

Whilst I have seen them go thro' in around 3 weeks - I would allow 2 months or even 10 weeks ( as aussie says - can slow it down if required)

Craigb - you say "my lender" do work for this lender or you mean you broker for 1 lender only?

Some lenders with really good rates can be a bit slower than others - although if you are prepared in advance you won't lose out -
Some lenders do make "promises" of 1 month - but do you want to restrict your lender choice

johannamse

took me about 4-5 months with alliance and leicester. Lets just say they were not very good. In my cynical view I would say give it 3m.