Some basic advice please. :)

FUNKYDADDIO

Hi, I have just put my house on the market and am hoping it sells soon. My question is this, I like fixed rate mortgages and am assuming that if I borrow i.e. 100000k for a new home and take a fixed rate @ i.e. 2.99 for two years I pay 2.99 for two years then go to SVR. At the end of two years I will have paid off 2 years @ 2.99% of 100000. Will I then be free to look for a new deal ofering better than the SVR? So in essence could I change every 2/3 years to "discounted rates" for the length of my mortgage? Is it as simple as that? Many thanks, Paul..

Mr_helpful

FUNKYDADDIO wrote: »

Hi, I have just put my house on the market and am hoping it sells soon. My question is this, I like fixed rate mortgages and am assuming that if I borrow i.e. 100000k for a new home and take a fixed rate @ i.e. 2.99 for two years I pay 2.99 for two years then go to SVR. At the end of two years I will have paid off 2 years @ 2.99% of 100000. Will I then be free to look for a new deal ofering better than the SVR? So in essence could I change every 2/3 years to "discounted rates" for the length of my mortgage? Is it as simple as that? Many thanks, Paul..

More or less its as simple as that apart from the arrangement fees of many mortgages and the fees of some mortgage advisers which mean that paying off you mortgage might be a lot more than you expect

agrinnall

FUNKYDADDIO wrote: »

Hi, I have just put my house on the market and am hoping it sells soon. My question is this, I like fixed rate mortgages and am assuming that if I borrow i.e. 100000k for a new home and take a fixed rate @ i.e. 2.99 for two years I pay 2.99 for two years then go to SVR. At the end of two years I will have paid off 2 years @ 2.99% of 100000. Will I then be free to look for a new deal ofering better than the SVR? So in essence could I change every 2/3 years to "discounted rates" for the length of my mortgage? Is it as simple as that? Many thanks, Paul..

Blimey, that'll be a hell of a house if your mortage is £100 milliion :j

FUNKYDADDIO

agrinnall wrote: »

Blimey, that'll be a hell of a house if your mortage is £100 milliion :j

Lol... If i keep moneysaving you never know...

powerwin

You need to take into account all fees involved in switching to a new mortgage provider. This is likely to include the early repayment charge and exit fee from your existing mortgage, then you will have to check what charges the new mortgage will have, including arrangement fee, and in turn its early repayment charge and exit fee in case you want to switch again. All these charges can be significant and may mean you would be unwise to switch too often.

This is not professionial advice ...

Rgds

FUNKYDADDIO

Thanks guys, so if I keep moving from one promo/discounted rate to another evry 2/3 years will it still be paid off over the same time as sticking to one rate or will it be longer? Thanks

hcb42

It will be paid off at the same time - if you take the new mortgages over the same timeframe...:)

InMyDreams

The other thing to keep in mind is that in order to move lender, you will have to go through the whole application process again, including having your house valued and your income and affordability verified. There are no guarantees and the banks are free to move the goalposts.

This likely to be less of a consideration though if you have a very secure job, are very healthy, have lots of equity to start with and aren't borrowing close to the max you can get today.

FUNKYDADDIO

I found this thread bookmarked and thought I would give an update, I sold my house last week!! woo hoo.........thanks again for all your advice guys...