Mortgage Q 11 months till fix ends, arrange new "banker" offer now?

freebo_2

Hi,
Our 5 year fix ends in 11 months, we got it at 3.99% so I know payments will be going up, and I know roughly what the new repayments would be at todays rates, my question is when to arrange our next mortgage.

I'm concerned that rates may have further to go up and ideally would like to have a "banker" offer available should things take a further turn for the worst, should rates stay roughly where they are I'll not actually use this offer but if they take a larger hike (say .75% over the next 6 months) I can pay my redemtion fee (about £3K) and activate the offer.

As I understand it if I don't use the offer I'll be up for the admin fee, but, if I can get a mortgage with a fairly low admin fee this could be worthwhile as the outstanding mortgage is about £230K on a property valued around the £450-470K mark.

Is this feasable

Thanks,

Mike

lynnexxxo

Hi

The main fly in the ointment I can see is that most mortgage offers are only valid for three months. So your banker offer only lasts till christmas at which point you might be still thinking to yourself - whats going to happen now will interest rates go up/down and you are back in the same scenerio.

Also would your credit rating be affected by all these application (i don't know, just something worth thinking about).

riad_2

From what I understand I think most mortgage offers are valid for 6 months? So you couldn't really start applying until 6 months from when your deal is going to expire.

pollyanna24

I must admit I thought it was 3 months, but there are some that offer 6 months, the problem is finding these.