Remortgaging timeline

Burnsie1983

I am currently in a fixed term mortgage that expires at the end of April 2023 

Obviously, thanks to Vlad, I am concerned about the increase in mortgage rates. My current term is 2 years fixed at 3.29%. this was higher than I originally expected, went for the 2-year fixed so that when I came to remortgage my LTV would be under 80% and I could access cheaper deals more quickly..... That obviously backfired

My LTV is approx 70%ish now due to the increase in value of the property.

Am I correct in thinking that the majority of mortgage offers are valid for 6 months. Therefore, if I get a mortgage offer at the end of October, continue to pay my current mortgage for the remaining term, I could switch. Could the new mortgage offer be withdrawn if interest rates increase again?

Burnsie1983

Ps my early release payment is above £2,000, so there is no cost benefit to take in a better long-term mortgage now and paying the fee

K_S

Burnsie1983 said:

I am currently in a fixed term mortgage that expires at the end of April 2023 

Obviously, thanks to Vlad, I am concerned about the increase in mortgage rates. My current term is 2 years fixed at 3.29%. this was higher than I originally expected, went for the 2-year fixed so that when I came to remortgage my LTV would be under 80% and I could access cheaper deals more quickly..... That obviously backfired

My LTV is approx 70%ish now due to the increase in value of the property.

Am I correct in thinking that the majority of mortgage offers are valid for 6 months. Therefore, if I get a mortgage offer at the end of October, continue to pay my current mortgage for the remaining term, I could switch. Could the new mortgage offer be withdrawn if interest rates increase again?

@burnsie1983 You're thinking on the right track. Most mainstream remortgage offers are indeed valid for 6 months (some are 6 months from application date, some are 6 months from offer date, others have fixed product end dates which get updated every few months).

Some lenders will allow this 6 months to be stretched a bit, for example Nationwide will allow you to reserve a product for 90 days at DIP stage, so effectively you can lock in a rate for 2+6 months. Other lenders will allow an extension for 1/3/6 months, again allowing a rate to be locked in earlier than 6 months.

Once a full mortgage offer is issued by a mainstream, I've never had one withdrawn simply because interest rates rose after that. Lenders offer rates based on the costs of tranches of funding they've secured so they'll still make money even if rates later go up.