remortgage term dilema

kokolino23

Hello,
Our current mortgage ends in September, can we look to remortgage 6 months in advance? Would an offer last that long?
Thanks

RelievedSheff

We did when we remortgaged last year. Secured the rate early and gave the free legals team at Optima plenty of time to get the paperwork in order.

To be fair to Halifax the rate we were eligible for decreased during the six months so they reissued the mortgage offer with the lower rate further down the line.

Ohfeelya

Yes I just remortgaged on Friday using a mortgage offer from November. I think the length of the offer varies by lender, a broker will know which is which. 

kokolino23

Ohfeelya said:

Yes I just remortgaged on Friday using a mortgage offer from November. I think the length of the offer varies by lender, a broker will know which is which. 

You're right, the offer varies. I just struggle to find the right broker 

K_S

kokolino23 said:

Hello,
Our current mortgage ends in September, can we look to remortgage 6 months in advance? Would an offer last that long?
Thanks

@kokolino23 With mainstream lenders, most remortgage offers will be valid for 6 months. So you should be fine to start looking now.

With some lenders it's not a true 6 months (as it tracks product end dates which are only updated periodically) and depending on the timing of the application the validity can range from 5-7 months).

The MSE guide here explains how to go about finding a whole of market broker. 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!

kokolino23

I spoke to a couple of mortgage advisor and they kept me on the phone for 45 min, then offered me a high rate. My LTV is very low, under 20%, is very frustrating to spend so much time on the phone to them when they could've told me the rate available first ?!
If I'm OK with that, then I'm more than happy to share my financial situation with them.

kokolino23

Looks like we might have a problem...
Because the remaining mortgage balance is £20k, not many lenders are willing to offer us a deal ?!
Also, another dilema. We're looking to get a 2 year fixed deal with the remaining mortgage term of 3 years. We've been told that most of lenders would like a longer term, around 5 years so limited options for us.

K_S

kokolino23 said:

Looks like we might have a problem...
Because the remaining mortgage balance is £20k, not many lenders are willing to offer us a deal ?!
Also, another dilema. We're looking to get a 2 year fixed deal with the remaining mortgage term of 3 years. We've been told that most of lenders would like a longer term, around 5 years so limited options for us.

@kokolino23 If you're with a mainstream lender and not looking to borrow more, is a product-transfer/product-switch/rate-switch not an option? PTs usually have lower minimum loan sizes.

kokolino23

We've managed to make some progress with this but I can't figure something out.
Because the remaining mortgage amount is relatively low (20k), our options are limited.
If we go for a 2 year fixed deal and 5 (or 3) years term, would the interest paid back be higher than a 2 year deal and 2 year term?
Our intention is to pay off the mortgage at the end of the 2 years fixed deal anyway but if we reduce the term from 5 to 2-3 years our monthly payments will be higher therefore pay less interest.
The best option to save money would be to get a 2 year term with 2 years fixed rate. Any longer term (even though the 2 years fixed deal will be the same) means we'll pay more interest towards the mortgage.

dimbo61

Just go for the cheapest 2 year deal and overpay upto the max allowed ( 10%)
Build up savings and at the end of the fix just pay off the outstanding balance.

kokolino23

Cheapest one is 2.44, 2 years fixed deal, £0 product fee
Struggle to find anything better