Tracker Until April 07

catz747

Hello,
I was looking at our mortgage papers and we are on a tracker until April 2007, I just wondered what happens in April 2007 (considering we have another 20 or so years to go). Do we negotiate a new deal or shop around for a better deal (like car insurance)

I'm going to ring them soon cause I want to ask about overpayments but I just wondered about this

Ian_W

It will also say in the papers what happens at the end of the tracker - often it will revert to the lenders Standard Variable Rate which, almost without exception, Sucks - and then some!!
A couple of months before enquire of your current lender what is the best rate they'll offer then compare what other lenders will but include the various fees in your calculations. A remortgage can take several week to go through so do allow time - even if you switch lender you can usually arrange for the new one to start as the old one finishes.
In the meantime try reading Martin's remortgage guide - well worth the effort to get to understand the process.

MortgageMamma

I think you should shop around for a remortgage now - never go straight to the same lender. speak to a whole of market broker who can search the whole of the uk market to find you a better mortgage deal. not just that they actually advise you on it so you know what you have got.

herbiesjp

You should always go to your current lender to see what they can offer you first.

You would then need to compare against the best of the rest.

The amount of your mortgage will dictate whether paying higher fees for a cheaper rate will be worthwhile or whether going for a higher rate with no fees would work out to be a better option.

It is not always as clear as looking at the headline rate

HTH

MortgageMamma

A good broker will also be able to inform you of your current lenders retention products. One thing you need to know is many lenders will not reveal the product they intend to offer you until about one month prior to your current mortgage product expiring. They do this as they think you will stay with them on what they offer rather than risking four weeks on standard variable rate to switch to another lender. Its a little trick to keep you there. This is why I am saying do your research now, and see whats available, there is also potentially another interest rate rise rumoured for the spring, and it would be good if you could avoid that (if it happens)

Who is your current lender?

catz747

Thanks for your replies

Our current lender is Halifax

MortgageMamma

Halifax arn't usually great with their retention deals, although they have been getting a bit better in the last few months. There is a lady who works in the customer retention dept for Halifax who sometimes posts on here, maybe she will see this thread and contribute

catz747

Going to see Halifax later in the week to see what they have to offer & then do a bit of shopping around

herbiesjp

catz747 wrote:

Going to see Halifax later in the week to see what they have to offer & then do a bit of shopping around

Well done for the first step:T

Fingers crossed they offer a good deal, if not at least you'll know what deals you have to beat

giger

Also worth noting that although the tracker may end in April, you may be tied into the lenders SVR for a certain amount of time. Generally trackers do not have extended tie ins though so you should be ok.

I am currently with Halifax and about to remortgage in May. Currently Halifax are way off their competition, but it doesn't hurt to ask. Generally Halifax allow 10% overpayments per year but again it depends upon the specific deal.