Coming off a 3 yr. fix... Advice needed!

SuperPootle

Hi All,
Coming to the end of a 3yr fix (expires in Mar) @ 4.9% with Stroud & Swindon. Have seen they're offering a 5 yr fix that tops the Sunday Times best buy chart. I might be sounding like an idiot here, but if you remortgage with the same lender (after the fix expires, they move you to their SVR), do you get clobbered the same way with arrangement fees/exit fees? Logically it seems silly if they did that because it would seemingly make any loyalty to the provider pointless?

Also, is a fix the way to go? Am looking to move in maybe 2 years - the advertised fix is 5 years. Would this prove a problem when buying a new house? Would you end up essentially with 2 mortgages - ie the original mortgage and then the extra at a different rate? Is that possible?

Thanks very much,

SP :rotfl:

KTF

If you move products but stay with the same lender then you generally only have to pay the product fee (if any).

If you are planning to move then check to see if the mortgage is portable so the original amount you borrowed moves with you.

herbiesjp

Also remember that when you port, it is treated like a whole new application, so fully underwritten again.

So if your circumstances have changed i.e career break, less income etc, then they may not be able to agree the extra money that is needed, and could force you to pay the early repayment charge in order for you to find a lender who could agree the mortgage for you.

SuperPootle

Thanks very much for your replies, it's helpful!
Just called my provider to see their charges for staying with them, but switching to their new fixed rate. I've seen in the press that their fix is around 5.40%. I've called them, but since I'm an existing customer, they'll only offer me a higher rate.

The way it stacks up:

Deal in the press: 5.40%, £500 product fee, £275 legal fees (effectively leaving the society and returning)

Deal offered as existing customer:
5.89% 2 Yr fix at £399 product fee
5.99% 5 Yr Fix £299 product fee

What are my best options? I'm tempted to opt for the 5 yr fix, but would the extra %age rate in the expensive deal help me more than the low fee? The mortgage is around £100k (tiny house!)

The circumstances haven't altered, they've stayed the same, just worried about getting clobbered when my fix ends.

Any advice, as always appreciated!

Thanks, SP