How soon can I secure a mortgage deal?

GMS

kempstar wrote: »

what i want to do is lock in a good long term deal at a low rate. i am concerned that by the time Sep 2014 comes around, that rates would have gone up and/or prices will have fallen, both of which will affect the deals available to us.

If we could lock in a rate say 6 months before that, then that would reduce the risk a bit, as we only have to get to Feb 2014, which is 6 months sooner. Make sense?

I

No point in looking at rates now as there is no way of securing an offer that far in advance. Obviously you could pay to come out of the current mortgage but I suspect the cost will be pretty big?

Rates are currently low as you say and looking attractive to many people, particularly longer term fixes.

Without paying the Early Repayment Fee you will need to wait and hope rates are still attractive in 13 months time.

When you do look at changing make sure the lender will issue an offer valid for 6 months.

GMS

Also be careful which lender you use. Most will have an expiry date on the rate rather than a fixed period from completion. If you are securing an offer with the intention of completing 6 months later than you would lose some time off the fixed period whilst waiting.

May sound picky but if the period is important then factor it in to the calculations. If you can get a set period from completion then it may be worth a slightly higher rate to secure the extra fixed time.

kempstar

the ERC is very high. I think its 5% in year 1 and 3% in year 2. So not even worth considering really.

I will start looking then in just over a years time. Thanks for pointing out about the expiry date of the rate.

I will also give my current lender a call to see how early i could look to change. They have some decent rates at low LTVs and are very contractor friendly.

savit4l8er

GMS wrote: »

An AIP assesses no documents.

Why should a remortgage be straight forward?

That is not necessarily correct. For example, your own bank who sees a regular salary paid in could offer an aip subject to val straight off even if no property is found. That could last for six months. They will offer the mortgage provided the property is suitable.
That is all the op needs. Perhaps you treat it differently but in the end that is what the op needs.

And as for straight forward, the new lender knows the property is mortgaged already so they and the applicant can be pretty sure it will be acceptable security. Plus they may just do a desktop valuation. Plus they may do all the legal work.
That is much easier for the applicant than a purchase, surprised you asked really.

GMS

savit4l8er wrote: »

That is not necessarily correct. For example, your own bank who sees a regular salary paid in could offer an aip subject to val straight off even if no property is found. That could last for six months. They will offer the mortgage provided the property is suitable.
That is all the op needs. Perhaps you treat it differently but in the end that is what the op needs.

And as for straight forward, the new lender knows the property is mortgaged already so they and the applicant can be pretty sure it will be acceptable security. Plus they may just do a desktop valuation. Plus they may do all the legal work.
That is much easier for the applicant than a purchase, surprised you asked really.

Just because a property is mortgaged with one lender does not mean it will be acceptable to another. Criteria changes as do individuals circumstances.

Straight forward is not necessarily true. Issues can arise with either.

savit4l8er

GMS wrote: »

Just because a property is mortgaged with one lender does not mean it will be acceptable to another. Criteria changes as do individuals circumstances.

Straight forward is not necessarily true. Issues can arise with either.

I said pretty sure, that does not imply certain. Unless he lives in a prc structure or something he should be pretty safe. Shall we just rest it there.

I only came to check a savings rate and just thought I would help the guy.:(