Five Year Fix Ending.

NATCHER

My five year fixed mortgage rate with The Chelsea is due to expire in August and I will be looking around to probably fix again (I like the security of a fix).

At the start of the year I took out extra borrowing also with the Chelsea, also fixed (2 years) which has around 18 months to run.

Here are a few queries I have.


1. Do I have to stay with The Chelsea with my 'original' mortgage because of the additional borrowing is with them?

2. Would it be worth seeing an Independent Mortgage Advisor (Bristol Area) instead of shopping around on the www?

Thanks in advance.

cbrpaul

I am not sure about your extra loan ?


But I also prefer to fix at 5 year periods ,,,


I have just come out of a 5 year fix myself , and went for another 5 year fix , that I booked 6 months ago !!!


This was at no extra cost , and was fee free !!


First Direct !!! you can book 6 months in advance, so if rates start to go up before your current 5 year fix ends, your ok , as you booked your rate already

NATCHER

Thanks Paul.

Is there anyone out there that knows if I have to stick with Chelsea due to this 'extra' borrowing/mortgage I have running along side my original mortgage or can I shop around myself?

Or would it be better to use an independent mortgage advisor?

TrickyDicky101

You can remortgage elsewhere but then you would need to pay the ERC on the additional loan. You won't be able to have two mortgages with different lenders for the same property as mainstream lenders (which is whom you are targeting) will want a first charge.

NATCHER

Thanks TD.

I'm guessing ERC is Early Repayment Charge, which would be pretty high I guess as I'm only a few months into the fix.

Am I right in saying I have two options, if I don't want to pay the ERC.

1. Fix again with The Chelsea & have the same problem at the end of the fix.

2. Go on a variable rate and wait 'til the extra borrowing fix has finished its term & then look again.

Thanks again.

TrickyDicky101

Yes that's correct.

Depending on the numbers involved, it could be worth your while moving your mortgage to another provider and suffering the ERC.

NATCHER

Thanks again TD.

That's something to look into.