Early redemption and fix now or wait till August?

Welshspacechick

Hi my 5 year Natwest fix rate ends in Nov. The earliest I can enter into a new fix is 01 August. I could pay the early redemption of £800 but the earliest appt I could get with an adviser would be 14 July anyway. Do you think Natwest fixed rates will change much between now and August? Should I hold fast? Thanks 

RelievedSheff

You could always look to switch lenders and remortgage elsewhere.

That way you can secure a deal now ready for your fixed rate to end in November.

Lifes_Grand_Plan

RelievedSheff said:

You could always look to switch lenders and remortgage elsewhere.

That way you can secure a deal now ready for your fixed rate to end in November.

Is that equivalent of locking in the rate (i.e. apply now but with a later start date)?

How far ahead can you normally do that?

K_S

Welshspacechick said:

Hi my 5 year Natwest fix rate ends in Nov. The earliest I can enter into a new fix is 01 August. I could pay the early redemption of £800 but the earliest appt I could get with an adviser would be 14 July anyway. Do you think Natwest fixed rates will change much between now and August? Should I hold fast? Thanks 

@Welshspacechick Assuming that you are in a position to remortgage (change lender), don't wait for NatWest. In the meantime you can get a remortgage offer from another lender. The exact period can vary slightly across lenders but generally speaking the offer will be valid for between 5-7 months so will easily go up to November. With some lenders you can even reserve a rate at DIP stage for a few weeks (plus the 6 months validity) and others you can get a 6 months + 1 month extension, so taking you beyond new year.

When you know what the NatWest product-switch rate is that you will be offered, you can compare and decide what to do.

Given the recent volatility in rates, I've done this quite a few times for my clients this year. In most cases, they've been better off on the secured rate than the PT rate offered to them a few months down the line. And where they're not, I just do the PT for them. 

Just make sure to not risk any upfront costs (eg: add product fee (if any) to the loan, use lender free legals or cashback plus no-completion no-fee conveyancing, etc.) Most mainstream remortgage products come with no valuation fees anyways so that's not an issue.

I would recommend considering the use of a whole of market broker so they can quickly get you the best rate available for your circumstances/requirements and put in an application asap, the MSE guidance here will help you find one 

https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!

RelievedSheff

Lifes_Grand_Plan said:

RelievedSheff said:

You could always look to switch lenders and remortgage elsewhere.

That way you can secure a deal now ready for your fixed rate to end in November.

Is that equivalent of locking in the rate (i.e. apply now but with a later start date)?

How far ahead can you normally do that?

Yes it is.

Offers are usually valid for 6 months although it varies between lenders so you will need to check with the lender you choose.

simon_or

Exactly what KS said, speak to a fee-free whole of market mortgage adviser so that they can scan the whole market (including some lenders that you can't access), are responsible for the validity of the offer (even though they say 6 months, it can vary by a couple of months, it's weird), making sure that you don't incur any sunk costs and can get a rate asap.

At the same time, also check out direct only lenders like Lloyds and FirstDirect. Not all advisers will/can tell you if they are cheaper.

Jimeji

K_S said:

Welshspacechick said:

Hi my 5 year Natwest fix rate ends in Nov. The earliest I can enter into a new fix is 01 August. I could pay the early redemption of £800 but the earliest appt I could get with an adviser would be 14 July anyway. Do you think Natwest fixed rates will change much between now and August? Should I hold fast? Thanks 

@Welshspacechick Assuming that you are in a position to remortgage (change lender), don't wait for NatWest. In the meantime you can get a remortgage offer from another lender. The exact period can vary slightly across lenders but generally speaking the offer will be valid for between 5-7 months so will easily go up to November. With some lenders you can even reserve a rate at DIP stage for a few weeks (plus the 6 months validity) and others you can get a 6 months + 1 month extension, so taking you beyond new year.

When you know what the NatWest product-switch rate is that you will be offered, you can compare and decide what to do.

Given the recent volatility in rates, I've done this quite a few times for my clients this year. In most cases, they've been better off on the secured rate than the PT rate offered to them a few months down the line. And where they're not, I just do the PT for them. 

Just make sure to not risk any upfront costs (eg: add product fee (if any) to the loan, use lender free legals or cashback plus no-completion no-fee conveyancing, etc.) Most mainstream remortgage products come with no valuation fees anyways so that's not an issue.

I would recommend considering the use of a whole of market broker so they can quickly get you the best rate available for your circumstances/requirements and put in an application asap, the MSE guidance here will help you find one 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashbidentifyack/#step3

Good luck!

Hi,

the link doesn’t work. Can you repost correct link please?

K_S

Jimeji said:

K_S said:

Welshspacechick said:

Hi my 5 year Natwest fix rate ends in Nov. The earliest I can enter into a new fix is 01 August. I could pay the early redemption of £800 but the earliest appt I could get with an adviser would be 14 July anyway. Do you think Natwest fixed rates will change much between now and August? Should I hold fast? Thanks 

@Welshspacechick Assuming that you are in a position to remortgage (change lender), don't wait for NatWest. In the meantime you can get a remortgage offer from another lender. The exact period can vary slightly across lenders but generally speaking the offer will be valid for between 5-7 months so will easily go up to November. With some lenders you can even reserve a rate at DIP stage for a few weeks (plus the 6 months validity) and others you can get a 6 months + 1 month extension, so taking you beyond new year.

When you know what the NatWest product-switch rate is that you will be offered, you can compare and decide what to do.

Given the recent volatility in rates, I've done this quite a few times for my clients this year. In most cases, they've been better off on the secured rate than the PT rate offered to them a few months down the line. And where they're not, I just do the PT for them. 

Just make sure to not risk any upfront costs (eg: add product fee (if any) to the loan, use lender free legals or cashback plus no-completion no-fee conveyancing, etc.) Most mainstream remortgage products come with no valuation fees anyways so that's not an issue.

I would recommend considering the use of a whole of market broker so they can quickly get you the best rate available for your circumstances/requirements and put in an application asap, the MSE guidance here will help you find one 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashbidentifyack/#step3

Good luck!

Hi,

the link doesn’t work. Can you repost correct link please?

@jimeji Sorry about that, I've corrected it now. 

https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3