New deal with existing lender

NOVAMET21

Hi

My current fixed mortgage deal ends on 03/03/2017 and I can now apply for a new deal online.
I have just been online and the new deal for 2 years fixed comes at 1.69% with no product fee.

It says the new deal will start when your current deal ends but then it shows the new deal will end on 02/01/2019. I was expecting to see the end deal for new 2 year deal to be 02/03/2019.

So the new 2 year deal is 22 months rather than 24 months. Is this normal?

Thanks

kingstreet

It isn't for a number of months, it is until DD/MM/YYYY as many products are. It appears your current deal is the same as it ends on 03/03/2017.

If you want a product which runs for X number of months/years from completion, you will need to move to a lender which offers it.

NOVAMET21

What will happen if I try to change the deal lets say on 01/02/2017?


Will the rate change? Will the new deal end date change from 02/01/2019 to more in the future?

kingstreet

The same thing will happen trying to alter a deal/remortgage before the end of any penalty period however the penalty period has been arrived at. You'll be charged an early redemption penalty.

As stated, when you take out a new product it is issued either for x years or months from completion or until DD/MM/YYYY and it doesn't change after that.

When we issue our suitability letters we phrase the deal "fixed at 1.5% for two years until 31/12/2018" or "fixed for two years from completion." At the end of the day, we don't know when completion will take place, so a fixed end date may be more or less than 24 months, so we always state the end-date, if there is one...

AnotherJoe

agurung wrote: »

What will happen if I try to change the deal lets say on 01/02/2017?

Will the rate change? Will the new deal end date change from 02/01/2019 to more in the future?

It depends whats available at that time.

If you switch now you are locking into what deals are available now.
If you wait, you get what deals are available at that point which may be different (in a good or bad way) from whats available today.

NOVAMET21

Thank you.


I think I will wait until Feb 2017 and see if they change the end date of new deal so it's not near Christmas or new year.

kingstreet

Sorry, I think I got the wrong end of the stick before.

A lender will have funds allocated to a product with a certain end date and as time goes by, that will be used up and a new product will replace it with a new and later end date.