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Tracker first, then fixed

I believe that interest rates will go up in a few years after the general election.

I am in the process of buying a house. The five year fix rate with Santander is competitive to me. However, there is an arrangement fee of £995 and a completion fee of £150. It works out cheaper over the five years.

I don't want to pay all the fees and then the sale fall through. Therefore am I able to go with a tracker rate initially and then fix at a later date? (using the terms in the current agreement) or will I have to get another mortgage agreement? The mortgage application is valid until the end of August apparently. What fees would

Comments

  • lee111s
    lee111s Posts: 2,987 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker
    Yes you can change deal once the minimum term (if there is one) is up.

    First direct have a lifetime tracker (75% LTV) that tracks 1.99% above base but has no ERC and no minimum term. I'm gonna go for that when I'm due to remortgage if it's still available, the when the rates rise I'll fix in!
  • w00519772
    w00519772 Posts: 1,297 Forumite
    lee111s wrote: »
    Yes you can change deal once the minimum term (if there is one) is up.

    First direct have a lifetime tracker (75% LTV) that tracks 1.99% above base but has no ERC and no minimum term. I'm gonna go for that when I'm due to remortgage if it's still available, the when the rates rise I'll fix in!

    Do tracker rates have a minimum term? Would I have to redo the mortgage application for a fixed rate or could I use the already approved mortgage application before the expiry date?
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