Remortgage deal - can I accept and then switch? ERC? Overpayment allowed?

At8

Hi I am hoping someone can help as I am confused! My existing lender has ofefred me some remortgage deals. I would like to secure one now as it's reported that interest rates could go up from 4.5 to 4.75% in June and to 5% in August.

My mortgage renewal is not til end of Sept though, so the rates could be better by then?

If I accept one my lender's deals now, can I switch later for a possible cheapaer rate? Will I incur any early repayment charges or any other costs if I want to change my deal?

I also want to pay a bit more of my mortgage by Sept, can I overpay if I accept one of these deals? 

Thank you!

K_S

@at8 Just to get the terms right - It's a product-transfer/product-switch/rate-switch when you stay with your current lender. It's a remortgage if you're moving to a new lender.

- mortgage rates available in September could be better or worse, can't really tell. However, given that we're only 3 months away, bar some kind of catastrophe (like the mini budget related volatility) it's unlikely to be a lot higher/lower than they are today.

- with most (not all) lenders you should be able to switch to a cheaper rate but each will have their own process. For example some will require that you go on SVR for a month before the new rate kicks in.

- overpayment: with most lenders, the rate switch is based on the balance at the point you apply, without taking into account any future overpayments you might make before the end of the fix. You should still be able to overpay within the terms of your mortgage.

At8 said:

Hi I am hoping someone can help as I am confused! My existing lender has ofefred me some remortgage deals. I would like to secure one now as it's reported that interest rates could go up from 4.5 to 4.75% in June and to 5% in August.

My mortgage renewal is not til end of Sept though, so the rates could be better by then?

If I accept one my lender's deals now, can I switch later for a possible cheapaer rate? Will I incur any early repayment charges or any other costs if I want to change my deal?

I also want to pay a bit more of my mortgage by Sept, can I overpay if I accept one of these deals? 

Thank you!

housebuyer143

Swap rates are on the rise and lots of lenders have been increasing products the last day or two. It would be wise to secure it now because in the short term they are on the way up again.

simon_or

You could have got a remortgage rate back in March if your current fixed rate ends in September.

Even staying with your own bank, many offer new rates 6 months in advance.

Most rates are likely to be higher in September, so it would be prudent to fix now before your bank increases rates like a lot of banks have been doing in the past few weeks.

At8

Thanks all for helping me! I'll speak to my bank and secure a deal today.

michaels

Santander (who offer new rates 4 months before product end date) told me if I take an offer now the old rate sill stay in place until the current product end date and that anytime between now and the new product starting I would be able to choose a different new product from those available at the time.  However I guess I am committing to continuing with Santander.

Have to admit I did go ahead and choose a product from what they have available now as I think swap rates mean that fixes will be increasing at least in the short term, hopefully before October they may come down again an I will be able to choose a better deal but I won't hold my breath.

At8

I am also happy to continue with my lender! Now I must decide 2 or 5 years fixed!!!! I hope I make the right decision!