Remortgage timing

jlpike

Hi.im just under 6 months from my 5 year fixed ending. 

Plan is to apply for a mortgage with a lender whose offer lasts 6 months to lock in current rates. 

Assuming rates are same or worse proceed with lender when completing after fixed ends so no charges. 

But in the unlikely event rates come down significantly in 4-6 months possibly look for another deal. 

Could this be detrimental financially. If valuation and legals are free only cost is application fee. 

Is the application fee paid when the mortgage moves or at the start and if its at the start and you don't go ahead do you lose it! 

Thanks in advance

K_S

@jlpike With the vast majority of lenders, you can add the product-fee (if any) to the loan so there is no risk of losing the fee if you don't complete on that offer. To avoid paying interest on it, you can always pay it off after the mortgage starts as lenders usually allow penalty-free overpayments of 10% of the loan amount, so you should be fine.

For a detailed explanation, the MSE guide here explains this https://www.moneysavingexpert.com/mortgages/mortgage-fees-stamp-duty/