1yr left fixed but want to extend now

Doglover88

I've got 1 year (well, 14 months) left on a fixed repayment mortgage with B&W at 4.75% (taken out 4 yrs ago). I would like extend the fixed rate period in the next couple of months if possible, for something like 5 or 10 years
Seeing as I'm tied in with them for 14 more months, might I be able to negotiate a better deal with them now rather than wait for another year? And aviod early redemption penalty seeing as I'm still using them?
Obviously I'll be speaking with them in the new year but wanted to see if I had any sort of bartering power by offering to stay with them for another 5 or 10 years?

Many thanks in advance

danjberry

not sure what you mean by "extend the fixed rate period" as not sure how B&W work but the company i work for do not allow you to take your current rate and extend that - if thats what you mean. and due to recent rate increases i would not think you would be able to get a better retention rate then your current. these rates are usually higher then your current rate (depending on recent interest rates and when you took out the mortgage) as the benefit is no val, arrangements, legal fees so they could easily charge you a rate of over 5% when you comes off your current deal and a lot of people would take that rather then go through the bother or moving lenders.

if you wish to stay with them for another 5 years you could possibly arrange a new deal with them, as said above the rate will be probably be higher and need to be for them to make a profit, and take it on right away but why not wait for your current deal to expire if all retention rates are higher?

Doglover88

Thanks
Sorry didnt explain myself clearly, I meant am i in a position to get a better deal, but not as good as my current one, if i agree to sign up with them now, for another 5 or 10 years? I've a year left on my current one but theres a possibility I will be away for a few months when its up for renewal in early 2008.
Thanks again

SJW

I don't believe you are able to do this without incurring a penalty. After all the lender will look upon the fact they offered you a special fixed rate and the early redemption penalty is their back up for offering this deal if you wanted to change it earlier which in theory is what you are doing.

parttimepar

We are about to pay off the remaining amount on our mortgage and have been advised by our lender that in Scotland we need a solicitor which would not be the case in England. Can anyone tell us why a solicitor is required and what they have to do. Someone has mentioned 'Discharge of security' and 'Registration Fees'