5 yr fixed rate, repayment expires Nov 2013 - when should I start to look for new fix

edited 30 November -1 at 1:00AM in Mortgages & Endowments
18 replies 1.3K views
MollyJoeMollyJoe Forumite
168 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi
Please could anyone help.

I am currently with Nationwide with a 5yr fixed rate at 5.79%.

This ends Nov 13.

When should I start to look around for my new deal.

I really need the peace of mind of a fixed rate.

Thank you
MollyJoe
«1

Replies

  • dimbo61dimbo61 Forumite
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    Some lenders allow you to BOOK a new deal up to 6 months in advance!
    I know that 5.79% does not look a good rate in today,s market but you have had 5 years security.
    What does the mortgage revert to at the end of the fix?
    Depending on the LTV you now have you can get 5 year deals at 2.79% with 40% equity ( COOP)
  • ThrugelmirThrugelmir Forumite
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    dimbo61 wrote: »
    What does the mortgage revert to at the end of the fix?

    Definately worth checking before doing anything else. So dig your paperwork out.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • MollyJoeMollyJoe Forumite
    168 Posts
    dimbo61 wrote: »
    Some lenders allow you to BOOK a new deal up to 6 months in advance!
    I know that 5.79% does not look a good rate in today,s market but you have had 5 years security.
    What does the mortgage revert to at the end of the fix?
    Depending on the LTV you now have you can get 5 year deals at 2.79% with 40% equity ( COOP)

    I would need to dig out my original paperwork to see what I revert too.

    Currently with Nationwide.
    My outstanding balance is £68,149
    Approx valuation today £125,000


    Thank you
    MollyJoe
  • MollyJoeMollyJoe Forumite
    168 Posts
    Thrugelmir wrote: »
    Definately worth checking before doing anything else. So dig your paperwork out.


    May I ask why is what I revert to important?

    As I really need the peace of mind of a fixed rate, not variable.
    I do not want to be worrying will it go up / down each month.

    thank you
    MollyJoe
  • MollyJoe wrote: »
    May I ask why is what I revert to important?

    As I really need the peace of mind of a fixed rate, not variable.
    I do not want to be worrying will it go up / down each month.

    thank you

    You should get the best rates then been just under the 60% LTV. Where you took the mortgage out 5 years ago I would think that you would be on a low rate tracking the Bank of England base rate. If I were you I would find out what this would be and then continue to pay your normal payment? This will reduce what you owe quite substantially. If you would like security though which sounds like you do then being 60% you should be able to get a good 2-3% fix. Just look around. Have a word with your current provider though and see what they can offer?
  • MollyJoeMollyJoe Forumite
    168 Posts
    thomasdown wrote: »
    You should get the best rates then been just under the 60% LTV. Where you took the mortgage out 5 years ago I would think that you would be on a low rate tracking the Bank of England base rate. If I were you I would find out what this would be and then continue to pay your normal payment? This will reduce what you owe quite substantially. If you would like security though which sounds like you do then being 60% you should be able to get a good 2-3% fix. Just look around. Have a word with your current provider though and see what they can offer?

    Would love to continue to overpay but so many things to also consider. My son is now 7 and since he was born I have worked part time.
    Forgoing lots of things.
    Our car nearing 10 years old and lots starting to go wrong. High road tax, petrol costs etc.
    Perhaps a new fridge, carpet in the following year.
    Had been hoping if I was lucky enough to make a significant saving each month to be able to get back on track, with newer smaller car etc.
    Thank you
    MollyJoe
  • As dimbo61 said; a five year fix at 2-3% or even a 10year fix at ~4% is that security enough and with all the above you can keep your payments the same and still be overpaying on the better rate.
  • With all respect to all the above answers, i see that the answers above can be more of a headache then your situation. i have been in the business for 12 years and i will provide with the a direction that will help you with making the right decision.
    you have 5Y fix, and your interest rate is really high compare to today's rate, so my suggestion is that you shouldn't wait until the term of the loan is up and then try to refinance, what i would advise my clients that are in your situation is to get setup and ready for the refinance by making sure that you have already loan approval and ready to lock the loan, then continuously monitor the daily rates until and compare them to the rates on different days within the month in order to have a good evaluation on when the rate is low and when u see an excellent rate have your loan officer lock your loan and proceed with the refinance, because if you wait too long the rates might not stay as low as it is now, and your adjustable loan will start adjusting and then you are an in mess then hunting for any loan just to get out of your situation.

    bottom line when do you start looking the answer is "NOW!!!!!!"
    where do you monitor your rates i would suggest a place to check, the rates are updated daily which can help you with making a good decision on when to lock and here is the page where you could view the updated rates daily visiting "leaderscorpfinancial.com/mortgage-rates/"
    if you have anymore specific answers i will be more then happy to guide you in making the right decision and eliminate the headache and the mistakes. if you don't have a loan officer to help you with the refinancing i will be more then happy to be your loan officer and guide all along. you let me know if you need my services and i guide you through the steps then.
  • kingstreetkingstreet Forumite
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    Your mortgage will revert to Nationwide's BMR of 2.5%. This is because your mortgage started before 30 April 2009.

    A few months before your fix is due to end, have a look at customer retention products offered by your current lender and remortgage products offered by new lenders.

    Take into account any fees payable to lenders and advisers, so you make a fair comparison. At such a low mortgage amount, it's likely the fees payable will outweigh the savings of a very low rate/high fee product.

    I would think very carefully about leaving Nationwide's 2.5% BMR. Once you do, there's no way back.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • kingstreetkingstreet Forumite
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    dmorenque wrote: »
    With all respect to all the above answers, i see that the answers above can be more of a headache then your situation. i have been in the business for 12 years and i will provide with the a direction that will help you with making the right decision.
    you have 5Y fix, and your interest rate is really high compare to today's rate, so my suggestion is that you shouldn't wait until the term of the loan is up and then try to refinance, what i would advise my clients that are in your situation is to get setup and ready for the refinance by making sure that you have already loan approval and ready to lock the loan, then continuously monitor the daily rates until and compare them to the rates on different days within the month in order to have a good evaluation on when the rate is low and when u see an excellent rate have your loan officer lock your loan and proceed with the refinance, because if you wait too long the rates might not stay as low as it is now, and your adjustable loan will start adjusting and then you are an in mess then hunting for any loan just to get out of your situation.

    bottom line when do you start looking the answer is "NOW!!!!!!"
    where do you monitor your rates i would suggest a place to check, the rates are updated daily which can help you with making a good decision on when to lock and here is the page where you could view the updated rates daily visiting "leaderscorpfinancial.com/mortgage-rates/"
    if you have anymore specific answers i will be more then happy to guide you in making the right decision and eliminate the headache and the mistakes. if you don't have a loan officer to help you with the refinancing i will be more then happy to be your loan officer and guide all along. you let me know if you need my services and i guide you through the steps then.
    This is a UK-only site.

    Your spamming is of absolutely no use, whatsoever.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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