Remortaging before six months ownership ?

pinkpiglit

We bought our flat the end of March. Our fixed rate, which ends on 31 July, was ported across to avoid the c. £5k ERC. We also topped up with additional funding, although the new funding has no tie-in period.

What I would like to know is whether we can begin the remortgage process (via a broker) BEFORE we have owned the place for the required six month period. Completion/start date of the new mortgage would be agreed for early October, ie after six months ownership.

Is this do-able, or can we only start the process after six months ? (I know there are a limited number of lenders who allow remortgages before you've owned for six months, but I want to ensure we have the widest pool of lenders to choose from.)

We've always had a fixed rate (we like the security of knowing what our payments will be) and I'm keen to fix again sooner rather than later as I'm getting increasingly nervous with all this talk about potential interest rate hikes taking place this year.

Thrugelmir

Is your existing lender uncompetitive?

pinkpiglit

Thrugelmir wrote: »

Is your existing lender uncompetitive?

We are with Woolwich and I hope upon remortgage that we might just make it into the max 70% LTV bracket. (We were just under 72% at purchase)

Obviously we need to speak to a broker first (husband is a contractor albeit PAYE as he works through an umbrella company), but I think there might be some better 2-3 year fixed deals out there than what Woolwich can offer us.

Brock_and_Roll

Aside from the fact that you probably wont be able to do this, it is unlikely to make much financial sense.

Firstly because of any early termination charges associated with the existing fixed rate. Secondly because of any costs associated with the remortgage, and thirdly because as a banker I can tell you that prices in the wholesale money markets are already factoring in interest rate rises (minor by historical comparison) over the next 18 months or so. So in simple terms the mortgage providers will being paying a higher rate for 3, 4 or year money and as such will pass this on to customers in terms of higher fixed rates.

pinkpiglit

Brock_and_Roll wrote: »

Aside from the fact that you probably wont be able to do this, it is unlikely to make much financial sense.

Apologies if a daft question – but which bit doesn’t makefinancial sense? Wanting to start theremortgage process early or my wanting another fixed rate product?

dimbo61

With the slow pace of mortgage application I do not think appling now will do any harm.
It is taking 3/4 months to remortgage with many lenders all you need to ensure is that you remortgage in October and repay the existing mortgage once out of the ERC,
What sort of deals have you been offered and you need to look at ALL the costs of a remortgage.

pinkpiglit

Thanks - in that case I might make some enquiries next week and see if I can find a broker who can help.