end of fixed term

pma13

Hey sorry if stupid question but at the end of fixed term do most people change mortgages for a better deal? And what sort of costs are incurred with this ? Thanks

Lilla_D

Well, you have 3 basic options:
- switch to a new deal with the same lender
- switch to a new deal with a different lender
- do nothing and just revert to the standard variable rate

The choice has to be made individually dependent on your circumstances, e.g.
- are you planning move or are you staying put?
- would you like to reduce/keep/increase the mortgage amount and/or term?
- what is your current rate, what potential new rate could you get and what is the standard variable rate?
- have your income, outgoings, credit history, number of dependants changed since taking out the current deal? If so, what effect do they have on your ability to borrow?
- what costs would you incur by taking a new deal?

Re costs, most deals come with a £1k arrangement fee, but you get free valuation and free legals, while often there's also a small money transfer fee (£8-£50) and you may have to pay the account closing fee (few hundred pounds) as well as potentially a broker fee.

Net, there's no universal answer, it all depends on your situation.

Scad

Some remortgage rates out there are amazing at the moment. A lot of deals can be chosen to have no product fee but you will be charged a higher rate.

It really comes down to your situation but a good place to start is looking at the mortgage comparison bit on this website.

Best of luck but definitely worth doing.

getmore4less

Most review and do something.

There will be trade off between rate, cost to change and size of mortgage/payment.

Plenty of zero fee with legal and valuations include

Simple calc to compare to rates/fees against your mortgage/payment to decide the best before looking at the other factors.

pma13

Thank you everyone !