Changing 2 years fixed rate to 5yrs

jaelato1

I am changing my 2yrs fixed rate with Natwest to 5yrs before exchanging contracts due to fear of brexit. What is the procedure? Will my application be 're accessed, credit checked?

AnotherJoe

If anything, Brexit will tend to reduce the size of interest rate rises.

Last thing a newly independent UK needs is a high currency.
If Brexit doesn't happen for example, and we abandon the effort, that's why you should fix, not the other way round.


I dont know why but there's a kneejerk reaction every time someone says "Brexit" that it will mean mortgage rates go up. It could mean many things, including loss of jobs, people holding back from buying property, all sorts of things but interest rate rises are probably number 99 on the list, well below number 10, interest rate reductions.

peter12345678910

I think maybe a tracker mortgage maybe more suitable as a no deal Brexit or another general election seems likely which means uncertainty which business hates so interest rates could fall which may be better than a high fixed rate.

Though I have a 5 year fixed rate with Natwest, which I did directly with the bank and did not use a mortgage advisor so no fees.

It also depends on inflation which is currently at 2.4 and the target is 2, this does not predict an increase in interest rate and also GDP which could depend on trade deals with USA, China, India which also depends if we stay in the customs union?

Also an extension to March deadline.... it will obviously also depend on the interest rate of the 5 year plan.

Though predictions are for a slight increase, but according to a bank of England expert they may stay low for the next 20 years:
https://www.google.co.uk/amp/s/amp.theguardian.com/business/2018/aug/09/interest-rates-will-stay-low-for-20-years-bank-of-england-expert

Thrugelmir

jaelato1 wrote: »

I am changing my 2yrs fixed rate with Natwest to 5yrs before exchanging contracts due to fear of brexit. What is the procedure? Will my application be 're accessed, credit checked?

You apply for a new mortgage. The full works.

What penalty will you incur on early redemption?

Thrugelmir

AnotherJoe wrote: »

If anything, Brexit will tend to reduce the size of interest rate rises.

US Fed is the benchmark to monitor. More likely to be a greater influence on interest rates globally than Brexit. Likewise ECB stops QE at the end of the year. Tide is finally about to turn.

FirstTimer4Me

Created own thread

Peelerfart

jaelato1 wrote: »

I am changing my 2yrs fixed rate with Natwest to 5yrs before exchanging contracts due to fear of brexit. What is the procedure? Will my application be 're accessed, credit checked?

Fear of Brexit! Anyone would think you don't trust our politicians :-)

Seriously though, you may potentially pay fees for, settling early, brokers fees,higher interest rate, all for what?

Cause no-one knows. Mortgage rates may fall, then what you going to do?

Do it all again?

xyz123

Do not base your decision on brexit... Nobody knows what's going to happen. Decide based on your personal circumstances like affordability, income security, saving buffer, any plans for family or moving etc...

kingstreet

Is NatWest still charging £150 for a post-offer product change?

Mortgage_Adviser

jaelato1 wrote: »

I am changing my 2yrs fixed rate with Natwest to 5yrs before exchanging contracts due to fear of brexit. What is the procedure? Will my application be 're accessed, credit checked?

Some times the things do get delayed so ammending the application may incure some delays in gettign the paperwork changed.
Your broker/adviser will have now to ammned his recommendation as well.


OK, the delay may only be a few days but these few days migh actually mean some one offers more for the property and the sake fall through alltoghether only because you decided to make the last minute changes.

peter12345678910

Probably this fear of Brexit has not been helped by the Governor of the BOE and is causing confusion, if you read this letter he sent to the Chancellor he does blame high inflation due to higher import costs due to Brexit:

https://www.bankofengland.co.uk/-/media/boe/files/letter/2018/governor-cpi-letter-080218.pdf?la=en&hash=39D0CD86D203550BF0A8B18EF7235B1583A86503