When can I re-mortgage?

angrybarry

Hi All

Just heard Martin on Radio 2 talking about sorting out your mortgage now.

My GF and I have a fixed rate 100k Northern Rock mortgage that expires in May '08.

1. Can we still attempt to negotiate a re-mortgage/new mortgage now, before interest rates go nuts?

2. If not, how soon before we can re-mortgage? or should we wait the 8 months and see if the market calms down?

Extremely worried now as our income won't stretch to an additional £200-250 increase?


Please help
Barry

herbiesjp

You can potentially start to look 6 months beforehand, with some lenders that will hold an offer letter valid open for that length of time.

However, you will have to make sure that the product chosen does not expire before May 08. By this I mean an offer letter will be valid until May 08 but the interest rate you choose may have a draw down date of, say, 31 Jan 2008 - so that would be no good to you.

If you ar elooking at this option, make sure you look at deals with incentives like free legal fees and valuations, and the potnetial to add arrangement fees to the loan, so that way if you do not proceed for whatever reason at least you will not be out of pocket

pollyanna24

Are interest rates destined to go nuts then? I thought that we probably wouldn't have any more BoE raises? I know the whole thing with credit crunch is supposed to affect rates as well, but is this only if you have a sub-prime mortgage?

I have a fixed rate which is also up in early-mid 08, but I'm not sub-prime (least I don't think I am).

toonfish

I think Martin is potentially on a sticky wicket here - if folk fork out arrangement and valuation fees now and rates subsequently fall will there be a campaign to reclaim these?

No-one knows how rates will go for sure but the concensus seems to be down ar stable rather than higher.

angrybarry

toonfish wrote: »

I think Martin is potentially on a sticky wicket here - if folk fork out arrangement and valuation fees now and rates subsequently fall will there be a campaign to reclaim these?

No-one knows how rates will go for sure but the concensus seems to be down ar stable rather than higher.

That's more reassuring than some of the other "media" reports I 've been reading. I guess it's just my creeping paranoia that once my fixed rate expires, we'll get walloped with a large mortgage increase.

Apologies, didn't mean to scare anyone