The best time...

x_Wilco_x

Hi guys, not usually over in this neck of the woods but need some quick advice - hope you can oblige...

My current fixed deal is ending on 1st November (4.9% for last 5 years with Abbey). Now I know that I am not gonna get that kind of rate again, any time soon, but when is the best time to start shopping around to buy a new deal that will start as soon as current deal ends?

Ideally I want to go to Abbey first then shop around, not afraid to re-mortgage (done it 3 times before) but just wanna get my timing right. Report on the news today said start looking early (especially in light of todays rate increase) but surely if I look too early I will get laughed at???

Cheers in advance...

:beer:

herbiesjp

Some lenders will give you an offer letter valid for 6 months, so you could apply now for a good deal if you wanted to.

No one will be laughing, plenty of clients doing exactly the same - setting up the re-mortgage early in order to take advantage of potentially lower fixed deals

x_Wilco_x

Are Abbey likely to be one of these? If I can get a good deal from them it will save the agro of a re-mortgage...

doobeycat

I am in exactlly the same position with my fixed rate mortgage with the Nationwide. It come to an end in November and over the last few months I have made queries into fixing a new mortgage before the rates went up. Unfortunately I could not proceed due to the early redemption fees. However, I was told by my local branch that they waive the fees if you decide to fix a new mortgage 3 months before the current one ends. Therefore, next month I should be able to select a new fixed rate without paying any fees.

I hope this is correct although I wish I had done it several months ago now. I suppose that is just the way the cookie crumbles!

x_Wilco_x

Well Abbey say I am to early - there is nothing they can do for 3/4 weeks (beginning of August) and the best 5 year rate they could offer me now (if they could do something) was 6.2% (didn't mention fees!)...

Should I hang on or start shopping around???

herbiesjp

Definitley shop around, as lenders seem to be agian in a period of increasing their deals

YOu could get something sorted out now in time for when your current deal expires, and if it is better leave Abbey, but of Abbey offer you a better deal then you can stay put.

You need to make sure you are looking at fee free deals, and ones you can add arrangement fees to the mortgage amount, so that you will not be out of pocket should you decide to stay with Abbey

HTH

x_Wilco_x

So, in essence, I could secure something else now (something which doesn't require me putting my hand in my pocket upfront) and then, when I can, go back to Abbey to see if they can better or match etc?

If Abbey can better anything I find now can i just cancel anything else I may have secured? Would I not be obliged to take a product I have agreed to, even if I have not paid anything upfront?

herbiesjp

That's it basically

Be careful as some lenders are not amenable to this, but in short, that is indeed what you can do

HTH

x_Wilco_x

Superb... some serious surfing to do methinks!

pollyanna24

Just wondered if anyone had any heads up on which companies will hold mortgages 6 months in advance? My mortgage is up in April 2008, so not quite time to start looking for me. I've done all my calculations and although I don't want to pay more than I am at the moment (4.59%) (haha, who does?!), I've allocated up to 6.28% on a fixed rate and that's what I'm hoping to get come the time when I have to start looking. It would be nice to get less, but I doubt it.

KTF

doobeycat wrote: »

However, I was told by my local branch that they waive the fees if you decide to fix a new mortgage 3 months before the current one ends.

Which fees are these? The product fees of the early redemption ones?