Remortgage early

mdamusicgroup

I currently have a nationwide mortgage on a 2 year fix that will expire in April 2018, with possible upcoming rate rises I was looking for a way to lock in a new deal (5 year fix) as a hedge against this.

My mortgage adviser (L&C) said we can only look for a new deal 3 months in advance, nationwide also lets you switch to a new deal with them 3 months prior to existing deal ending.

I read online however that some providers (First Direct??) allow you to lock a rate up to 6 months early. If for example I find a fee free 5 year fixed rate that would keep payments around my current monthly cost it seems a worthwhile thing to do to avoid risk down the road.

My question is can I lock this in now and what would be the penalties if in 3 - 6 months time I decide to go with a different provider or stay with nationwide? Do the banks charge some kind of fee if you decline the offer in the end?

YHM

Your mortgage adviser isn't considering your options.

I have just literally done a 5 year fee free remortgage for a client who's ERCs finish on the 31st of March, for the exact same reason as what you are wanting to do.

There are quite a few lenders out there that would provide 6 month offer documents that would support what you are looking to do.

dimbo61

https://www.moneysupermarket.com/money-made-easy/mortgages-book-in-your-rate-now/

Have a read

However Nationwide is a very good Lender and you may get a very good deal with them ( give them a call)

mdamusicgroup

Thanks for this info, spoke with first direct and seems like its all good to use them as a hedge like this.

One more question around the dates, my completion and release of funds was on 22nd April 2016, does that mean I can apply for the new mortgage on the 23rd October 2017 (the first day of the 6 month window).

I spoke to someone at nationwide who said my deal expires on 30th April 2018 so unsure which date to use as the earliest I can apply.

YHM

The 6 month will generally start ticking once you have a mortgage offer. This can take a good couple of weeks obtain, subject to lender, so as long as your offer is generated early November then the 30th April is within that 6 month window.

chelseablue

YHM wrote: »

Your mortgage adviser isn't considering your options.

I have just literally done a 5 year fee free remortgage for a client who's ERCs finish on the 31st of March, for the exact same reason as what you are wanting to do.

There are quite a few lenders out there that would provide 6 month offer documents that would support what you are looking to do.

Sorry to jump in, but this is very interesting.

Our 2 year fix ends on 31st March and am also planning on fixing for 5 years this time.

I thought I'd have to wait until after Christmas to apply to a new lender but obviously not

Interested in the Santander 5 year fix at the moment but need to find out how early we can apply

YHM

Chelsea

You could start looking now. Maybe speak to a broker and get them to review which lenders are options for you?

pinklady21

Apologies for also jumping in! My fixed rate ends on 31st May 2018. How soon can I apply for a remortgage and book a deal to save a new rate? Is it three months or 6 months ahead?

YHM

Hi Pinklady.

You can apply for a remortgage upto 6 months in advance, if the lender you go with has Offer Documents that last for 6 months. Earliest you can apply will be late November time for an offer to be generated early December

A broker can guide you on which lenders will provide 6 month offers.