2 year fixed deal ends in May, when best to arrange a new one?

fodderstompf

I have a 2 year fixed deal that ends in May; and I'm now beginning to look for a new deal.

Do I need to wait until the old one ends, or can I have a new one already set up to start in May.

When's the best time to start the process?

Could I (in theory) agree something now, or would I have to wait to find out the final redemention total in May?

Any help would be most appreciated.

thehairybuilder

I`m sure when you apply for a mortgage the offer is open for a period of up to 60 days therefore in theory you could agree to a deal in March .

I`m sure someone on here who`s more mortgage savvy will keep you right tho

firesidemaid

i have arranged a new deal with my own bank, rbs, to start in march - and because i am completing the paperwork now i have taken advantage of the current deals.

they will sort out the redemption figure on the day it starts.

i have also taken the opportunity to pay a bit off and lower the term in years.

it will probably depend on whether you stay with your current provider. but regardless, most lenders will need at least a couple of months to sort out the paperwork.

Rick62

Most lenders will hold offers & mortgage products for 3 to 5 months. So in your situation, with Fixed rates currently rising, I would try and secure a good rate now with your completion date in May. And as Sazzacat say, you should allow 6 to 8 weeks for the paperwork process anyway.

fodderstompf

Guys,

Many thanks for the help. Much appreciated!

Yeah, with the change in interest rates it's sort of quickened me up a bit. I was plannining to start looking February or March anyway, but this has made me full the finger out now…

Rick62, with the interest rates set to go up again, what do you think an average competitive fixed rate should be? I'll be paying 6.5 come May, if I don't jump ship quickly!

herbiesjp

You can get low 5% at the moment depending on how long you want to fix for

fodderstompf

Bloody hell, I just double checked. I'm on 6.49% UNTIL May. It then goes up to the SVR (which will be 7.34% come February 1st!).

I'd looking to fix the rate for 2-3 years. Longer if I got a decent deal.

I'd better pull the finger out!

Thanks for all the info.

Rick62

The best deals are currently 3 and 5 yrs Fixed with Cheltenham & Gloucester and Lloyds TSB Direct (same group) around 4.95% to 5.35% depending on length and fee. But I expect these to end probably this week sometime!