Mortgage renewal anniversary

seans_elysees

First post here after reading the wider website for a number of years!

Hello!

Having a look through my mortgage details earlier and the renewal date (expiry of my current 2 year variable tracker) jumped out at me.

Anniversary is now March 2021 - and my original term kicked off in June 2013 when I bought the property. (I've had 4x 2 year terms).

So obviously the anniversary date has crept forward. I'm just trying to get my head around why this has happened (as it effectively means I'm potentially not maximising value from my product fee before having to pay another one).

I assume I've renewed a bit early each time to avoid rolling on to the SVR. Pretty sure last time I renewed a bit earlier again to get my rate back down as the tracker rate had risen with the BOE base rate rise. These things combined have presumably brought my anniversary date forward without me thinking about it.

Is that sensible practice or not? I assume it depends on current vs new/available rate balanced against the product fees which isn't the most straightforward to quickly compare.

davidmcn

Bear in mind that the headline "2 year" etc deals are often "2-ish years", as they're linked to a fixed end date (reflecting the wholesale deal which the lender has), not your individual completion date.

[Deleted User]

There are a small handful of lenders who do term deals from date of completion. Everyone else gives a expiry date on offer, if case drags on it might dip below 2 years.

I just completed on a remortgage when they only completed 19 months ago. It is fairly common

seans_elysees

Belated thanks folks!

I'm not regular on the forum but appreciate the info and will definitely keep that in mind to scrutinise a bit more closely at renewal as it's not something that I noticed before.

Thrugelmir

To minimise product fees weigh up whether a longer fixed term maybe more beneficial. Are you adding the fees to the mortgage?

ACG

This cropped up on a thread the other day - forums.moneysavingexpert.com/showthread.php?t=6079903

You are not the only person to get caught out by it, we have started to add it to our suitability letters. It is pretty common that lenders offer fixed end dates.