Fixed rate period ending soon

ianw1969

Our five year fixed mortgage rate period is coming to and end this year. What is the best way to go about getting a better rate mortgage? Thanks

DannyboyMidlands

You could find one with a better rate and apply for it. Or, if you can't be fagged, get a broker to do it for you.

billa_champion

I was in a similar situation recently. I think a good starting point is to ring your current lender and find out what rate you'll be switiching to at the end of the fixed period. Also ask about other products they may have which might be of interest. Armed with this information I would ring a mortgage broker (e.g. London and Country) and see what other deals they can find you.

ianw1969

billa_champion wrote: »

I was in a similar situation recently. I think a good starting point is to ring your current lender and find out what rate you'll be switiching to at the end of the fixed period. Also ask about other products they may have which might be of interest. Armed with this information I would ring a mortgage broker (e.g. London and Country) and see what other deals they can find you.

Current rate is 5.68% and repayments are 628 per month. After fixed period repayments will go upto 699 after the fixed period ends.

DannyboyMidlands

Whack your details into this:

http://tables.moneyadviceservice.org.uk/Comparison-tables-home/Mortgages/Compare-mortgages/

kingstreet

When you get a couple of months from the end of the current deal, establish;-

- the follow-on rate from your existing lender
- what offers your existing lender might have available for you to transfer to
- the possible remortgage options offered by other lenders, both directly and via brokers.

Compare the options and see which you prefer.

G51shopaholic

Our 5yr fixed rate finished this month.

Fixed with Nationwide at 5.34% now down to 2.5%

Your rate will change to whatever your mortgage providers base rate is. Some providers have base rate & standard variable rate.

Our mortgage dropped £220 a month!!!

Now that some providers have put up their rates I'm getting new fixed 3yr rate from nationwide @ 2.99% (no fees).

Tabatha_Kitten

Sorry to butt in to someone elses thread, but I just wanted to ask G51 where he found the 2.99% 3yr fix with Nationwide. I just looked as I quite fancy that myself but could only find a 2.99% 3yr tracker which obviously isnt worth moving of the BMR for. The only 3yr fix i could find was 3.99%

kingstreet

G51shopaholic wrote: »

Your rate may change to whatever your mortgage providers base rate is. Some providers have base rate & standard variable rate

Amended slightly for you.

The borrower needs to check their original key facts illustration or mortgage offer to see what their follow-on rate is based on. It may be based on standard variable rate, or homebuyer variable rate, or whatever.

It may also be a tracker, based on a set rate with an agreed premium, such as Bank of England base rate + 1.9%, or LIBOR+.

dimbo61

Hi ianw1969,
Are you reading paperwork that is nearly 5 YEARS OLD ?
Who are you with ( Lender ) and what does it say in the OLD paperwork re follow on rate.
Some borrowers have deals which just revert to the lenders SVR at the time while others have deals which go onto tracker deals
If you dont have the paperwork just give your lenders mortgage centre a call ( have your mortgage account number handy ) and they can explain what you go onto and any other deals available.
You can then shop around if you want to or speak to a nice " whole of market mortgage broker"

marathonic

If he says "Current rate is 5.68% and repayments are 628 per month. After fixed period repayments will go upto 699 after the fixed period ends." it must be a rate higher than 5.68% he's moving to?

What's your LTV? If it's less than 60% LTV and you are finding current payments affordable, it may be worth considering a lifetime tracker.

For example, HSBC have a fee free product charging 2.29% above the base rate for the entire mortgage term (current rate 2.79%).

Fixed rates are a gamble because deals like the above may not be available when you next come off the fixed rates - think about people a few years ago who got lifetime trackers at less than 0.5% above the base rate. I feel that trackers are less of a gamble because, should a better offer become available, you are free to remortgage at any time.

In the 60% LTV scenario above, the Bank of England base rate would need to increase by 2.89% before your payments would exceed what you're currently paying (of course, it goes up in 0.25% increments so it'd really need to go up by 3% - this is more than a few years away according to the vast majority of economists).