Remortgaging

craig_1983

Hello, I'm remortgaging for the first time.my 5 year fix with co-op ends on sep 30. Just had a letter through post saying I should call them for renewal etc. my question is how long does it take to remortgage if i go elsewhere? House value about 120k. Got 68k remaining. Looking for another five year fix probably with a different lender.thanks.

HappyMJ

Could be anything usually complete within 8 weeks. A 60% LVR mortgage with Co-op over 5 years would be 3.39%...a fairly reasonable rate. You could consider a 5 year fix rate with another bank after taking into account the cost of switching (if you stay with Co-op you shouldn't need another valuation for instance) but this time I would look at the revert to rate which co-op's is 4.74%. Other banks revert to rates are less than 4% and there wouldn't be any need to remortgage again. The lower the amount outstanding the less worthwhile it becomes to switch as application fees outweigh the savings made by staying on the SVR.

cbrpaul

Some lenders allow you to book a re-mortgage deal up to 6 months in advance, fee free and no financial commitment up to the point of funds released, and with rates going to go only one way UP UP UP !!


The sooner you book a fix rate the better

Thrugelmir

craig_1983 wrote: »

Looking for another five year fix probably with a different lender.thanks.

Then take account of all the costs involved in remortgaging not just the interest rate.

First find out what's on offer from the Co-Op.

As your mortgage balance reduces remortgaging will become less and less viable.