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product switch - advice needed
aoleks
Posts: 720 Forumite
hi all,
at the end of this year, we'll reach the end of our extremely cheap 2 year fix mortgage. we made a few overpayments (nothing crazy) and expect the value of the property to have gone up 20% by then (market increase + extension + improvements). that will put us in the 75-80% LTV bracket. our bank allows a product switch 180 days before, so within 3-4 months, we'll be eligible.
can someone explain how this works? I understand the concept of a product switch completely, I'm just not sure about my obligations to actually proceed should better rates become available by the end of 2023 (which I strongly believe it will, but that's another discussion).
is it possible to "reserve" a product at some point during those 180 days with no obligation to proceed? in the right conditions, I might want to "cancel" my switch last minute, go discounted tracker or variable for a few months and re-mortgage (proper, full re-mortgage with equity release) sometime in spring/summer 2024.
or is reserving the product switch a binding choice?
thanks
at the end of this year, we'll reach the end of our extremely cheap 2 year fix mortgage. we made a few overpayments (nothing crazy) and expect the value of the property to have gone up 20% by then (market increase + extension + improvements). that will put us in the 75-80% LTV bracket. our bank allows a product switch 180 days before, so within 3-4 months, we'll be eligible.
can someone explain how this works? I understand the concept of a product switch completely, I'm just not sure about my obligations to actually proceed should better rates become available by the end of 2023 (which I strongly believe it will, but that's another discussion).
is it possible to "reserve" a product at some point during those 180 days with no obligation to proceed? in the right conditions, I might want to "cancel" my switch last minute, go discounted tracker or variable for a few months and re-mortgage (proper, full re-mortgage with equity release) sometime in spring/summer 2024.
or is reserving the product switch a binding choice?
thanks
0
Comments
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It varies from lender to lender. There is no hard and fast industry norm.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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HSBC. any knowledge on how they handle this?0
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