Transfer date of new remortgage

staggerlee

Hi

My five year fixed rate repayment mortgage of 6.45% with Santander expires on Saturday 2nd June 2012.

Santander have confirmed by phone that I am free to move to another lender (or remortgage/drop onto SVR with them) from Sunday 3rd June 2012.

Therefore I am currently applying for a remortgage deal with HSBC starting on the 3rd June 2012.

If any 'admin' errors occur and my new HSBC deal kicks in (even a day) before the 3rd June, I would be faced with a large ERC from Santander (about £3k).

I obviously want to avoid any chance of this happening, especially on the last day of 5 year deal.

Therefore....should I give myself a week's grace of dropping onto the Santander SVR for a week when my 5 year fixed ends? Or is is safe to arrange for the remortgage to start the day after the previous deal ends?

Thanks

Gareth

kingstreet

Give a written instruction to the solicitor HSBC appoints that under no circumstances should completion take place before the penalty expires*, ie earliest completion is Monday 4 June, the first working day after.

TBH you applied a bit early for a remortgage not needed until June. These things are only taking around a month from application to completion. Shouldn't be a major issue as long as the solicitors don't mess it up!

* That's an odd expiry date too. Normally, rates end on the last day of the month, like 30th or 31st. Was it for a fixed 5 years which started on 2 June 2007?

staggerlee

Thanks.

Is there any obvious disadvantage in trying to organize a deal approx 3/4 months in advance? (HSBC allows this)?

I've got a low LTV of about 30%, and am applying for the +2.09% Lifetime Tracker No Fees

My only thought in organizing the remortgage in advance was that lenders' rates offered will not be dropping in the next three months.
(I'd need to check the paperwork on the start date).

Gareth

kingstreet

Like I said, applying now isn't a major issue as long as you keep a tight leash on the solicitor. After all, they only get paid when it completes, so they will be cashflow hungry.

I 'spose you could also change to a better deal if one comes along in the meantime...