Reserve a mortgage rate 6 months in advance?

collingbone614

Dear MoneySavers,

I've got a fixed rate mortgage with Nationwide, rate 6.28%. We were first time buyers and saved up like madmen to get a decent deposit together. Our 'amount advanced' is £129,000. Our Loan to Value is reportedly '74.14%'. The deal is coming to an end within the next six months and I may well be able to save some dosh. I want to remain on a fixed rate due to our situation (i've got a joint mortgage with my brother and neither of us are big earners). I've tried searching around the forum to find if there are any lenders that have rates which you can reserve in advance and I couldn't see so much, I saw something from 2008 saying HSBC and Nationwide offer six month reserve in advance rates. I can't see too much up to date info - can anyone kindly point me in the right direction and or suggest lenders which offer this?

Kind regards,

opinions4u

Ideally you should see a mortgage broker who knows the current market well. Things have changed significantly over the past couple of years.

That said, while I appreciate your desire for a fixed rate, I'd seriously consider staying with Nationwide if your mortgage moves on to a competitive tracker at the end of your current fix.

Many of their loans move on to a standard rate that guarantees to be no more than 2% above the BofE base rate.

Going on to this and saving the difference between the new payment and the old payment could allow you to build up a fund that can be used to either pay a lump sum off the mortgage in future or to help you afford higher payments if the mortgage rate is unkind to you.

Mobility151990

omnirife, l work @ NBS as a mortgage advisor ( can't be too specific ) but if all you're after doing is remortgaging then it's no problem. ANY product that you reserve will be available from NBS for you to use for 6 months, HOWEVER, you must complete within that 6 months...

p.s. feel free to message me for any general FAQs however l won't be able to talk specifically regarding your account etc for reasons l'm sure you can understand.

STAR_BUCK

Lenders all have different rules for reserving mortgages e.g. Brittania would only reserve upto 4 months and Chelsea Building society would only reserve upto 3 months ahead.

It's best to also search around yourself to see what competitive rates there are. I used the http://www.moneymadeclear.org.uk/tables/bespoke/Mortgages website which is set up by the Consumer Financial Education Body (govt agency). I used the mortgages search engine and it basically pulls out all the mortgages currently available on the market, some of which you can't get via a mortgage broker, you have to go direct to the lender.

Once your armed with this information you could then see whether you could approach a lender directly or ascertain whether you'd be best to see a mortgage broker (especially in cases where your worried about whether you'll get an approval from the lender or not).