Mortgage Offers as insurance against rate rises?

locky82

Hi, I'm hoping you can help.

We are currently on a tracker (1.74%) that I can leave fee free anytime and with all the talk of rate rises in May and Nov (and Brexit) I want to get on a 10 year fix. Unfortunately my partner is on stat mat leave and the £110 pm difference between the repayments is coming in handy at the moment. I also don't trust Carney so I thought having a 10 year fix offer on the back burner to pull the trigger on at anytime might be a good insurance policy. My questions are;

1) Is anybody doing this all ready?

2) If I get a mortgage offer will it remain unaffected by rate rises?

3) If I applied now and rates weren't raised in May and I allowed the offer to expire, buying a few more months on the tracker how likely am I to be accepted applying again a short time after.

4) Have I missed something obvious?

I know seems like a lot of faffing for a few hundred pounds but Ive done a lot more for a lot less (stoozing)

Thanks for reading.

DragonQ

locky82 wrote: »

1) Is anybody doing this all ready?

Yes

locky82 wrote: »

2) If I get a mortgage offer will it remain unaffected by rate rises?

If it's a fixed rate mortgage, yes.

locky82 wrote: »

3) If I applied now and rates weren't raised in May and I allowed the offer to expire, buying a few more months on the tracker how likely am I to be accepted applying again a short time after.

The broker I spoke to said this would be fine, as long as you don't make many of applications in a short time. 2 applications over a few months is not a problem, according to him.

locky82

Thank you - I better get applying

DragonQ

Oh, one more thing. Check which mortgage fees are refundable if you end up not taking out the new mortgage. I went for the second cheapest mortgage available because it has a setup fee (refundable) and no valuation fee (which would not be refundable), whereas the slightly cheaper option had a £400 valuation fee that I'd lose if I ended up not taking the mortgage.

locky82

I'm currently looking at the 10 year fixes at TSB and HSBC 2.69% with no fee. I assume that TSB will probably have an easier application process so I think I'll give them a shot.

kingstreet

Presumably, this is a remortgage?

Your typical remortgage offer last three months with no ability to extend. Be careful with your timings.

Thrugelmir

locky82 wrote: »

I also don't trust Carney so I thought having a 10 year fix offer on the back burner to pull the trigger on at anytime might be a good insurance policy.

Overpay your mortgage by whatever you can afford. The easiest way of minimising future interest is to pay down the capital debt owed.