Swap mtg before 5yr fix ends,

Dandytf

Hi

I've been thinking very recently it may be worth 'my way of thinking' in changing my 5 yr fix to a 10 yr fix reducing term-9yrs approx

Via Natwide I know this isn't possible to compete online due to 1% early repayment charge.

My question is, if I go into a Natwide branch,will what I want to do be considered as a new mtg application or is it a simple existing customer product swap?
(I want to avoid a new mtg type application-see my sig)
Though I do have the options of swapping online next year 3 mths prior to aug 2017.

What I want to achieve is removing the uncertainty of future rate rises whilst committing to a reasonably lower rate 10 yr fixed.

I've been paying 400 p/month for 2-3 yrs

If I can get the 10yrs fix it will be in the 450 range which I can manage.

Current 5yr fix 5.19%
10yrs fix 3.99% approx..
o/b 47K approx.

MortgageMamma

Even with a product transfer a lender reserves the right to look at it as a full mortgage application, and the fact that you are willing to risk early repayment charges may make them look into it further. I get why you wouldn't want it looked at as a full mortgage application as I have read your signature, I'd say don't make any knee jerk reactions because of the brexit/potential rate rises just yet, watch what happens for a bit first. There will be lots of people panicking making bad decisions fearing the worst, and the worst may not happen.

Dandytf

MortgageMamma wrote: »

Even with a product transfer a lender reserves the right to look at it as a full mortgage application, and the fact that you are willing to risk early repayment charges may make them look into it further. I get why you wouldn't want it looked at as a full mortgage application as I have read your signature, I'd say don't make any knee jerk reactions because of the brexit/potential rate rises just yet, watch what happens for a bit first. There will be lots of people panicking making bad decisions fearing the worst, and the worst may not happen.

Thanks for your advice.

If i'm being honest I like the idea of reducing mtg term which would only cost a little more.

I think I'll ask the branch anyway,at least you have gave me an idea it's probably not going to happen.

You've raised a new concern though, the 'reserve the right' thing -I've never had a prob choosing a new existing mtg before with Natwide online though this is slightly different as i'm not in the 3mth fix end timescale to swap online.

amnblog

If you ask for to reduce the mortgage term your current lender will re check your credit file and your affordability.

Dandytf

Thanks amnblog

That's the information I required.

Maybe not the answer I was wanting.

I presume then i'm limited to 5yr fix max term for the next few years?

Or go 10yr fixed rate next year and overpay to reduce the term.

amnblog

Are you saying you want to reduce the terms to 9 years and take 10 year fixed rate?

Dandytf

amnblog wrote: »

Are you saying you want to reduce the terms to 9 years and take 10 year fixed rate?

No I accept your 1st answer.

Though Natwide offer 10yr fixed rates.

If I select 10yr fix next year keeping existing 18 or 19 yr term and overpay then maybe in effect I'll reduce the term by a few years.

getmore4less

Dandytf wrote: »

No I accept your 1st answer.

Though Natwide offer 10yr fixed rates.

If I select 10yr fix next year keeping existing 18 or 19 yr term and overpay then maybe in effect I'll reduce the term by a few years.


sc dmp 2012 13k

Jan 2016 5219 paid

Do you still have the DMP?
are you planning to prioritize one debt while not paying others what they are due?

Dandytf

getmore4less wrote: »

Do you still have the DMP?
are you planning to prioritize one debt while not paying others what they are due?

Hi

yes the dmp runs until late 2019.

I've been making mtg overpayments via Natwide since 2012 or 2013.

The dmp is staying as it is.

I'm going to swap mtg online next year 3mths in advance of 5yr fix period finishing.

Though from the very helpful advice by earlier user's it looks almost guaranteed I'll not be able to reduce the mtg term with a straight mtg swap next year.