2 year fixed deal finishes in August, what do I need to do?

Tom_B_

I've been living in my flat for 2 almost 2 years and the 2 year fixed mortgage I have is ending in August.

What I don't know is what do I do next? I'd like another fixed deal. I know they cost more but I like to be able to budget.

I've used an online calculator to work out how much I've paid off over the two years so presumably the remaining amount is what I need to borrow for the next mortgage.

What is the process of getting another mortgage? Is it as difficult as the original one? Presumably now that I've been paying it on time every month for the last 2 years I won't have to supply proof of income or any of the things I did last time?

Do I just apply for another one? How do I tell the old company that I'm moving?

JimmyTheWig

You've got three options...

1. Do nothing. You will go onto the follow on rate agreed when you took out the mortgage. This will likely be a variable rate and will likely be more expensive than you could get with the other two options. But you won't be tied in and if you plan to move within the next two years this may be your best bet for this reason.
2. Contact your current mortgage provider and ask them what deals they have that you could move on to. You could get another 2 year fix from them or any other deal that they have that takes your fancy. Note that these deals may differ from what the same company advertises online for new customers. This may involve a little faff, but shouldn't be anywhere near as complicated as applying for the mortgage in the first place. If you go with this option, factor in the product fees for the new deal rather than just looking at the rate.
3. Remortgage by going to a different mortgage provider. You can go to any company you like. A broker may help you with this choice. You will have to go through a full application process again. The fact that you have paid on time for two years will help your credit rating but it won't make the application process any simpler. In fact, I believe new rules have come in that mean the application process is now more time consuming. But this means you are free to choose any lender rather than the one you are currently with. That may mean you get a better rate than option 2. As well as product fees for the new deal there may be exit fees (different to early redemption charges) for the current mortgage and solicitors fees, etc, for the new mortgage. Though sometimes the new mortgage gives cashback to help with these.

Tom_B_

Thank you. I was looking online and my current provider do not offer the best deal, but perhaps I'll give them a call as it would be simpler to stick with them.

Since the mortgage finishes in August, when should I sort this out? Can I do it now and get everything set up to just kick in as soon as my current 2 year deal ends?

JimmyTheWig

Worth phoning them and asking them now. It will vary between mortgage companies how soon in advance you can arrange it.
You should certainly be able to arrange it to kick in as soon as the current deal ends.