Best Time to Remortgage

paye

Hi

My 3 year fixed rate deal is comming to an end in Febuary 2017 ( 22/02/17) I'm currently researching the current deals that are out there at the moment and I must admit there are some cracking deals around espeically on a 10 year fixed morgage.

Is there anything stopping me applying for remortgage deals now, ? and how long on average are mortgage offers valid for?

Rachel_Pierson

paye wrote: »

Is there anything stopping me applying for remortgage deals now, ?

No. You can apply now, and set the completion date to be whatever you want.

paye wrote: »

and how long on average are mortgage offers valid for?

About six months seems to be common. Depending on the deal, the interest rate could change whilst you have it on hold. Though some banks (not sure if all) will let you pay a fee of about £25 to keep the rate valid throughout the six months.

paye

Thanks for the reply, I will get the application rolling. :beer:
My current lender (Tesco Bank) advised me they will send the renwal information 6 weeks prior to my deal finishing, which is way to short for my liking.

csgohan4

Do you set the completion date on the day the fixed rate comes to and end or the day after??

Rachel_Pierson

paye wrote: »

Thanks for the reply, I will get the application rolling. :beer:
My current lender (Tesco Bank) advised me they will send the renwal information 6 weeks prior to my deal finishing, which is way to short for my liking.

Just FYI, I'm remortgaging right now. Started on October 16th, and am still completing conveyancing. This is despite getting a lending decision within the first phone call. Would have been quicker (about 6 weeks) if there hadn't been issues with the first conveyancer the bank used, and I hadn't ultimately had to source my own.

6 weeks would probably be about average for most straightforward remortgage processes, I suspect. Things that can make it "not straightforward" include getting a bad valuation, having done modifications to the house that were not approved and that are picked up by the survey, and simply having anyone involved (the bank, the surveyor, the conveyancer, or yourself) not doing what they need to do when they need to do it.

Rachel_Pierson

csgohan4 wrote: »

Do you set the completion date on the day the fixed rate comes to and end or the day after??

To be safe, I'd say the day after. At worst, that means you'll be on your 'old' lender's SVR for a whole 24 hours. The worst that could happen if you complete 24 hours earlier is that your old lender might consider that to be repaying the mortgage early, and might apply Early Repayment Charges as a result (which may or may not be enforceable, but it's a problem best avoided rather than allowed to arise and dealt with after the fact.)

Best to ask your existing lender what they consider to be the earliest date to conclude your existing mortgage without incurring a fee, so there's no room for doubt.