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Should I get a new mortgage

what?_2-2
what?_2-2 Posts: 11 Forumite
in Mortgages & endowments
My current mortgate deal ends in march. Martin's advice is to change to a new mortgage as soon as possible. My current rate is fixed 4.59%. To break my mortgage deal would probably cost around £2000.
As far as I can tell this wouldn't be worth changing, but I don't know if i'm missing something.
Can anyone give me any advice?

Comments

  • dunstonh
    dunstonh Posts: 121,046 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Can anyone give me any advice?
    Wait until you are closer as you are too far away at the moment.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • riad_2
    riad_2 Posts: 184 Forumite
    A lot of the special deal mortgages (such as the fixed one you're on now) charge penalties (i.e. £2000) to leave within the special offer period... but some now are doing extended tie in periods.

    Check your mortgage to see if there is till a fee to leave after the fixed rate ends. If there isn't (and a lot of them there aren't) an extended tie in period, start applying for a new mortgage (or ask your existing lender what other deal you could get with them when your fixed term ends) no earlier than 6 months prior to the end of the fixed rate.

    Your new mortgage will kick in the day after the fixed period ends, and if there is no extended tie in you won't have to pay the £2000 as the new mortgage takes effect AFTER your existing special period has ended.
  • Rifleman
    Rifleman Posts: 34 Forumite
    Part of the Furniture Combo Breaker
    Very good advice from Raid.
    I am a qualified Financial & Mortgage Advisor
    However,anything posted on this forum should not be considered financial advice. What is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from a registered Financial Adviser who can advise you after a personal fact find.
  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I haven't seen Martin suggesting that anyone who's tied in should remortgage straight away. That would be stupid advice. Could "what?" help us out by copying this bit of advice so we can see where you got it from?
  • HelpWhereIcan
    HelpWhereIcan Posts: 1,343 Forumite
    MarkyMarkD wrote: »
    I haven't seen Martin suggesting that anyone who's tied in should remortgage straight away. That would be stupid advice. Could "what?" help us out by copying this bit of advice so we can see where you got it from?

    I did see Martin on GMTV yesterday giving something like that advice.

    However I think his intention has been mis-understood.

    IIRC he was saying that the fallout from the current crisis will mean that mortgages will become more expensive in coming months. I got the impression that he meant those who are coming to the end of their deals soon should secure the rate now for when your deal ends - as riad has suggested.

    I think we all know that Martin would not want anyone to pay early repayment charges just to switch now.
    I am an IFA (and boss o' t'swings idst)
    You should note that this site doesn't check my status as an IFA, 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.
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