Re-mortgaging: when do I start looking?

Dorastar

Just trying to get a head start on the new year. Our fixed rate interest only mortgage is up in October and we want to move to a repayment but not necessarily with our current lender. We have a hefty early repayment clause so got to stick with current lender till October. When should we start looking around and finding out about remortgaging?

Farmerbob

Normally I would start looking around 3 months before the date is due to end, your current lender may be able to offer a new deal around that time, where as you can use that time to look at what other lenders can offer you. I would also check what your current lenders SVR is incase it may be better than deals at that time. I would also say why wait until Oct to start paying your capital, you can start overpayments in Jan and reduce the balance before any potential re-mortgage. Good Luck!

opinions4u

What's stopping you changing over to a repayment mortgage with your existing lender now?

Then look in to your remortgage options in the summer.

The two matters are independent of each other.

Dorastar

Have asked and they have said we are tied in to both the fixed rate and the interest only - but will re-check the small print just in case.

Farmerbob

I cannot see you being fixed on interest only just the fixed interest rate, they may however charge you to change to repayment, but if they they have an overpayment facility then you may be able to make overpayments at no cost (provided its within limits e.g RBS allow 10% overpayments per year) who is your lender? Im sure someone here will know.

Dorastar

Is Accord mortgages - they have said we can overpay 10% which we can start doing soon (dh had 2 years out of work recently so we are just getting back on an even keel) We are paying 5.49% fixed so hopefully anything we remortgage too would be lower atm and we could pay off more iyswim.

Am really grateful to get some replies already - really want to get it sorted well in advance cos hate last minute rushes.

Farmerbob

What sort of LTV are you just now, do you have any idea what your property is worth now? Accords SVR is around 5.99% so you'll be wise to shop about, best to look around August onwards then come Oct you will have a good idea about what to do, hopefully if you at least make some overpayment then it will give you more choice of products when the time comes!

Dorastar

Current LTV is 90% :eek: so got to get it down quite a bit this year before October.

collen

If you are coming to the end of your current deal or paying your lender's standard variable rate, it's a good time to start thinking about remortgaging.