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First mortgage deal ends in a year - no idea what happens
happytails
Posts: 1,554 Forumite
Ok so 5 year deal ends in August 2014 what usually happens? How do i go about getting a good deal? I wont have any money aside for a big fee (too much debt to pay off).
We have been on a fixed rate of 5.99% so anything better would be a bonus.
Sarah
We have been on a fixed rate of 5.99% so anything better would be a bonus.
Sarah
DFW Total £21,800 to clear by Dec 2022
MFW Total £184,950 £179,066 to clear by 2035
MFW Total £184,950 £179,066 to clear by 2035
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Comments
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Check what rate you will go to with your current lender at the end of the fixed term.
If that isn't competitive then you could look at other options elsewhere.
When you say debt do you mean mortgage balance or additional unsecured?I am a Mortgage AdviserYou 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.0 -
Check what rate you will go to with your current lender at the end of the fixed term.
If that isn't competitive then you could look at other options elsewhere.
When you say debt do you mean mortgage balance or additional unsecured?
Unsecured. All our spare cash is going to paying them at the moment.DFW Total £21,800 to clear by Dec 2022
MFW Total £184,950 £179,066 to clear by 20350 -
At the end of the deal one of 3 things can happen:
1) You will go to the lenders standard variable rate (typically between 4-5% at the minute).
2) You can ask your lender what deals they have available that you as an existing customer can go to (This is sometimes known as a product switch).
3) You can speak to other lenders and do a remortgage if they have deals you would prefer.
You can do this yourself, or you can engage a mortgage broker/advisor and ask them to do the research and leg work for you.I am a Mortgage AdviserYou 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.0 -
Have a look around and get advice from your lender and/or broker. You can switch to a new deal before your current deal ends but there may be a small charge for this.
I work for a mortgage adviser
I have amended the standard mortgage adviser signature because, even though I do not provide financial advice directly, I support and follow MSE's Mortgage Adviser Code of Conduct. My posts are for information and discussion purposes only and shouldn't be seen as financial advice.
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It is often possible to add the fee onto the balance of the mortgage.happytails wrote: »I wont have any money aside for a big fee (too much debt to pay off).
This isn't always a good idea as it means your debt goes up, but it can be worthwhile.0
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