My Mortage ends in 4 months, should i act now?

Leo-v

Hello

My current 3 year fixed mortgage ends on 8th October 2012.

I took the 5.74% deal with Santander three years ago lending £190000

When the term ends ill be looking for another three year fixed deal.

I am aware that rates are lower in these times.

Is there anything to gain buy sticking with my current lender? should i be acting now in anyway?

Your advice would be greatly appreciated.

Leo

Dave_Ham

Firstly ask Santander what they will offer you? I think they may only do this with 3 months remaining but you can ask.

If you are on interest only mortgage, you are in for some trouble as Santander will not offer you a new product and it will be virtually impossible to achieve one on the open market.

Alternatively, you may find there is more value in the 5 year fixed deals (subject to your circumstances and plans) and obviously your loan to value.

If you go external, you can start to look now get the mortgage offered and then complete when you come to the end of your deal.

If you do nothing you are likely to goto 4.24% if sold Abbey or 4.99% if A&L, although do check your paperwork in case it says something different.

Hope this helps

Senior_Paper_Monitor

.... and beware the Santander 'special offer valid until tomorrow' phonecall a couple of weeks before your ERCs expire !

Get, or have a broker get for you, a full analysis of other lender options.

Leo-v

Senior_Paper_Monitor wrote: »

.... and beware the Santander 'special offer valid until tomorrow' phonecall a couple of weeks before your ERCs expire !

Get, or have a broker get for you, a full analysis of other lender options.

Thanks for the replies.

You mention "Get, or have a broker get for you". I got my mortgage through "First Mortgage" three years ago as i was new to the game and a little unsure (i still am) and was intending to go it alone once my 3 year fixed term is up this year.

Would it be advisable to stick with First Mortgage as a broker for me? as im sure they will be calling me nearer the time. Do they not take a cut or some sort of commision?

My finger is far from being on the pulse when it comes to mortgages and am very much in favour of accepting advice from an expert but if that means getting that advice at the price of a more expensive monthly payment should i just go through the compare websites and do it that way?

Thanks again

leo

bigadaj

Need more info to tell, if your case is straightforward then arrange yourself, if problematic then use a broker. We have the mortgage amount so need house value, your salary, any credit problems or outstanding loans or credit card debts. If you are super clean then the hsbc or first direct products are generally cheapest, but you only get these if you are very low risk.

Senior_Paper_Monitor

The choice is yours.

If you feel you can do a good job do it.

If you don't feel you can do a good job pay someone else who can do a good job do it.

Its very little different to wall-papering your living room in that respect (whgich is why i suggested both option).

In terms of their payment yoiu have three options .....

a) a broker (independent) who will charge you a fixed fee and rebate any commission (may or may not be any commission on the product they recommend)

b) a fee charging broker (whole of market) who will charge you a (usually) much smaller fee and keep some commission from the lender. They will not include non-commission paying options in their analysis. The monthly cost of the mortgage that you pay will be the same if you serach and book direct or through the broker.

c) A non fee charging broker (whole of market) who other than not charginga fee is the same as C.

Example A will probably offer you an either B or C option as well (you choose in advance, not arrears)

B or C will not offer you the option A.


Other than the fee element none of the options above cost you more than a direct selection/purchase (commission is subtracted from the standard figure NOT added).