Remortgage options - what to do?

Bingjamin

Hi all,

I want to get some general opinions on my remortage situation as latest goings on in the UK economy have made me a little twitchy.

Essentially my fixed term is up in June 2023 and so I have already had a conversation with my mortgage broker a few months back about my options.

At the time, swallowing the ERC and fixing early wasn't a complete no brainer given we didn't really know the severity of potential interest rate rises as we do now and then the only other traditional option  was to wait until January to start the process. My broker did then suggest maybe trying something different that may or may not work, as I had a bit of time before I could lock in rate within the traditional time frame. This option involved applying for a remortgage now at a reasonable rate (knowing that this wouldnt acutally take me to the end of my current term), delaying the application until Jan and then amending some details within the application in the hope that the lender will extend the offer on the current rate (supposedly this lender has been known to quite freely extend mortgage offer dates when things on the application change). I agreed to start the application, given we would be no worse off if they didn't play ball in January. Worse case at the time would be they don't extend and Id have to a) pay the ERC or b) take an alternative (most likely higher) rate.

Given the change in economic circumstances since then, paying of the ERC (£4.3k) and fixing early now looks like a reasonable option, only a roughly a £70 a month increase over the term. Regarding the method I have described above, I am just a little worried that something may happen in between now and January (offer being pulled for lack of response in the application or if things get really bad they pull the application as it would not longer be profitable - not even sure if this happens).

Im leaning towards paying the ERC and getting the application going for piece of mind, however naturally I dont want to pay £4k out if I'm worrying for nothing. I have the money albeit it makes up a good part of my savings and would prefer it spend elsewhere or kept for another rainy day. I suppose the question I am asking is what would you do in my situation? What are the chances of the lender pulling the application because of delays? Should I just wait it out and hope for the best then weigh up my options again in Jan.

Would be good to get a few opinions on the matter.

Thanks.

K_S

@bingjamin You should ask your broker about your eligibility for a Leeds BS remortgage which offers 6 months validity plus 6 months extension on the same rate. That might be a more reliable way of securing a mainstream rate for 9+ months to avoid ERC.

Bingjamin said:

Hi all,

I want to get some general opinions on my remortage situation as latest goings on in the UK economy have made me a little twitchy.

Essentially my fixed term is up in June 2023 and so I have already had a conversation with my mortgage broker a few months back about my options.

At the time, swallowing the ERC and fixing early wasn't a complete no brainer given we didn't really know the severity of potential interest rate rises as we do now and then the only other traditional option  was to wait until January to start the process. My broker did then suggest maybe trying something different that may or may not work, as I had a bit of time before I could lock in rate within the traditional time frame. This option involved applying for a remortgage now at a reasonable rate (knowing that this wouldnt acutally take me to the end of my current term), delaying the application until Jan and then amending some details within the application in the hope that the lender will extend the offer on the current rate (supposedly this lender has been known to quite freely extend mortgage offer dates when things on the application change). I agreed to start the application, given we would be no worse off if they didn't play ball in January. Worse case at the time would be they don't extend and Id have to a) pay the ERC or b) take an alternative (most likely higher) rate.

Given the change in economic circumstances since then, paying of the ERC (£4.3k) and fixing early now looks like a reasonable option, only a roughly a £70 a month increase over the term. Regarding the method I have described above, I am just a little worried that something may happen in between now and January (offer being pulled for lack of response in the application or if things get really bad they pull the application as it would not longer be profitable - not even sure if this happens).

Im leaning towards paying the ERC and getting the application going for piece of mind, however naturally I dont want to pay £4k out if I'm worrying for nothing. I have the money albeit it makes up a good part of my savings and would prefer it spend elsewhere or kept for another rainy day. I suppose the question I am asking is what would you do in my situation? What are the chances of the lender pulling the application because of delays? Should I just wait it out and hope for the best then weigh up my options again in Jan.

Would be good to get a few opinions on the matter.

Thanks.