Remortgaging for 1st time - pointers

pred02

Hi,

My first 5 year fixed mortgage is coming to end in August. It was at 2.99% and I am looking to refinance to fix in a low rate before BoA starts raising interest rates. I have about 175k left on a property roughly revalued at 500k.

1. How far in advance of mortgage expiring do I need to refinance?
Are there any exit fees or penalties I need to be aware of?

2. Given likely the interest rates will go up I am looking at 5 year fixed. What happens if I sell my property before 5 year period is over?

Any other tips or pointers?

Thank you

kingstreet

1. You need to look at your original mortgage offer for the terms and conditions.

2. There are usually early repayment penalties to redeem a mortgage during the fixed period. You should research these before committing to a new product. If you are going to need another mortgage, you may be able to "port" the rate to a new mortgage with the same lender to avoid the ERPs.

You will have customer retention options from your existing lender to consider, as well as remortgage options where you take out a new mortgage with a new lender to redeem the current one.

An independent broker would be a good source of help with the planning and avoidance of unnecessary expense due to poor timing or product/lender selection.