When will I be committed to my new mortgage

kazd

Hi all

Our fixed rate is due to expire end of September, we have booked our new product with RBS and the completion will take place 1st October. Can anyone tell me at what point we are committed to this mortgage as there is a chance my husband might be made redundant and his payoff would be enough to clear the mortgage. If he does go for redundancy (Its not compulsory) it would happen beg of November and we would just switch to variable for one month with our existing lender.

Thanks

homer_j_3

It depends on what the paperwork says but I am sure if you were to call the RBS they would tell you. When do you think your husband will know for definite whether he will or will not and what amount he will be paid.

kazd

I am hoping he will know this week as we go on holiday next week. We are just trying to work out which will be best for us in the long run.

homer_j_3

ok - ring RBS up and ask the question - when will you be committed to the deal. You stating that you have booked it - have you paid a fee or are you adding it to the loan because I have a snealy suspisciion that they will charge you this if you dont go ahead - could be different for direct customers.

If its too late - you may as well just sleep on it and take your holiday. If not, you will know what timescales you have to make the decision.

Your home should be your priority and if you can own your own house with no mortgage then at least no one can take the roof from over your head. Your 2nd priority will be paying the bills so you need to work out whether you can do this and also what income your OH has to have to make their contribution. I would then look to start saving some money for a rainy day for the just in cases and that should put you in a good position

MarkyMarkD

In terms of ERCs you are only committed after completion. Before that all you would possibly lose is any product and valuation fees you've already paid.

Given the uncertainty, you shouldn't be looking at a new product with fees and an ERC. Why don't you switch to the ING deal instead as there are no fees in or out? If the job outlook improves, you could later on switch again to get a fixed rate if that's what you really want.

kazd

There are no fees attached to this deal. Don't want to ring RBS and tell them that there is a possibility of redundancy as this could cause all kinds of problems and its not quite as bad as it sounds.

Obviously if we come into a big chunk of money then our first priority would be to pay off the mortgage. We don't have any other debts apart from my car but that is interest free so pointless paying it off before we need to.

homer_j_3

u dont have to say sod all -ASK THE QUESTION there is nothing else they will think or ask