When to start looking for a Remortgage

joflo_2

Hi, I have my current fixed rate finishing on the 2/5/07 and was wondering at what point I can start shopping around, ie is there a time limit on offers. Thank you.

AndrewSmith

Hi,

It may be an idea to begin searching now. A large number of mortgage companies issue their mortgage offers with a 6 month shelf life. Bearing inmind that with the majority of companies it can take 4 weeks or more to obtain the formal offer this could tie in nicely with the expiry of your current rate.

It is expected that there will be another rate rise possibly this coming week, some lenders have already increased their swap rates with the remaining lenders expected to follow suit soon after.

Once you have your mortgage offer you can set the completion date of your choosing (as said above subject to the shelf life of the mortgage offer).

Andy

joflo_2

I spoke to a mortgage broker and they suggest waiting until Feb or even March before doing a new mortgage.My current mortgage company don't want to talk to me before January. I guess with the rates going up and up, and me coming to the end of a 7yr fixed rate I am being impatient.

Rick62

I would normally agree with your mortgage broker, but right now with the rates increasing AndrewSmith is right, if you can secure a Fixed rate at current rates with 6 month life it would probably be well worth doing.

AndrewSmith

joflo wrote:

I spoke to a mortgage broker and they suggest waiting until Feb or even March before doing a new mortgage.My current mortgage company don't want to talk to me before January. I guess with the rates going up and up, and me coming to the end of a 7yr fixed rate I am being impatient.

I still stand by what I said. Look now, secure a rate at today's swap rates which are likely to be lower than those available next march. If not you can transfer to a new product if a more attractive one becomes available at that time.

By looking now it will buy you breathing space, knowing that you have secured a good deal (as long as the offer has a life of 6 months) whilst still affording you the flexibility to keep one eye on mortgage rates ro see if anything better does come along prior to the end of your current rate.

At the end of the day, if you apply via the right company for the right product it will cost you nothing to put the application in, thus you will lose nothing or a very small fee relatively, if you decide to change at a later date.

Do what is best for you, not for the lazy broker or lender who doesn't want to have a client file for a remortgage open for 7 months.

Andy

herbiesjp

Indeed - get a deal agreed now.

As has been pointed out, you can get these agreed at minimal cost to yourself. So if another deal comes out that is better, you can always switch.

I would suggest going to an adviser that knows how to do this, as opposed to the adviser you have that is not concerned about you getting a good deal now while they are still around.

HTH

mbailey

A lot of the mortages I have seen are showing you paying for the application fee and valuation upfront, but this is refunded on completion. I assume this is to stop people applying for mortgages and then cancelling before they actually start?