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Further borrowing and fixed rate period
deano3
Posts: 234 Forumite
Hi,
Just looking for an answer to the following.
I have a mortgage with Natwest, the fixed rate period is due to end around June 2017. If i was to take out further borrowing on this mortgage (albeit at a different rate), would my fixed rate period still expire in June 2017.
I would want to take out the further borrowing now, then re-mortgage in June 2017 to avoid ERC.
Can i do that?
Just looking for an answer to the following.
I have a mortgage with Natwest, the fixed rate period is due to end around June 2017. If i was to take out further borrowing on this mortgage (albeit at a different rate), would my fixed rate period still expire in June 2017.
I would want to take out the further borrowing now, then re-mortgage in June 2017 to avoid ERC.
Can i do that?
0
Comments
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The further advance would be on a different rate to what you have now and may have a product end-date too.
The current borrowing will not be affected in any way by a further advance.
You may end up with two product end dates months/years apart.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »The further advance would be on a different rate to what you have now and may have a product end-date too.
The current borrowing will not be affected in any way by a further advance.
You may end up with two product end dates months/years apart.
Thankyou, i assume any new product is likely to be subject to a ERC. Having said that, as i am only looking for a further 12000 it wouldnt be much of a hit to pay any ERC on the 12k when it gets to June 17.
Thanks again0 -
It would be worth seeing if you have any options for further advance which don't involve an ERC for early repayment (frequently tracker options won't involve an ERC for example).0
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