Change Mortgage Before Fixed Rate Deal has Completed

kilmurray

Should I look to finish my current mortgage deal one year early, pay the penalty and set a longer fixed rate to help brexit proof my finances?

mdori003

Realistically no one knows the answer to this but it depends how much risk would can handle.

What are the early repayment charges and what is the balance of the mortgage?

kilmurray

Mortgage balance is around 400k (house value 550k), early repayment can be tagged to the mortgage to renegotiate, fee would be around 4k. Though I can start to look at renegotiating early next year. Concern is if we end up with a bad BREXIT, interest rates will be mad by then...

Peelerfart

kilmurray wrote: »

Mortgage balance is around 400k (house value 550k), early repayment can be tagged to the mortgage to renegotiate, fee would be around 4k. Though I can start to look at renegotiating early next year. Concern is if we end up with a bad BREXIT, interest rates will be mad by then...

So you're thinking of borrowing £4k to possibly proof yourself against something that might happen, triggering something else, that might happen?

kilmurray

Sensing that you think this is a silly idea...

MoneyGeoff

What's the earliest your lender will let you lock in your next fixed rate? It will be at least 3 months. If they say you can do it 6 months in advance of your current mortgage expiring then I'd do that as there's no penalty to pay.

greggymagic

Check with your mortgage company - I know First Direct let you lock in your mortgage rate deal up to 6 months from when your deal expires and I'm sure other companies do this.

somethingcorporate

greggymagic wrote: »

Check with your mortgage company - I know First Direct let you lock in your mortgage rate deal up to 6 months from when your deal expires and I'm sure other companies do this.

Nationwide is 3 months.