Fix rate ending in February 2024

Zoe02

Hi All,

I have 1 of my mortgage which is due to end in February 2024.

My understanding was there is no way avoiding the ERC if not staying witht he same lender and the allowed period to renew which with Virgin money is 4 months before (4th October 2023),

A broker called on LBC and said can lock a rate now for 6 months. 

In my case with Virgin money even 6 months from now will not work as it's not ending until Feb 2024 (8 months’ time).

The ERC is £4287 

Amount outstanding like £285k

Typhoon2000

Not sure what your question is, but it seems your options are to wait a couple of month to remortgage to another lender or wait 4 months to product switch with Virgin. I doubt it would be worth paying  the ERC to remortgage before then.

K_S

@zoe02 I'm not sure what you mean by '1 of my mortgage', but ignoring that and assuming that it's a single mortgage part -  

With a Virgin fix ending on 01 Feb 2024(?), there are ways to give yourself some optionality.

You could get a re-mortgage offer from a mainstream lender that allows you to stretch the usual 6 months validity. For example Nationwide allows brokers to 'reserve' a product/rate for a client for 90 days with a DIP, and the offer when issued will be valid for 6 months from the date of issue, so that should take you to 01 Feb. Or Platform will allow a 3 month extension on top of the 6 month validity, again taking you to 01 Feb.

Zoe02 said:

Hi All,

I have 1 of my mortgage which is due to end in February 2024.

My understanding was there is no way avoiding the ERC if not staying witht he same lender and the allowed period to renew which with Virgin money is 4 months before (4th October 2023),

A broker called on LBC and said can lock a rate now for 6 months. 

In my case with Virgin money even 6 months from now will not work as it's not ending until Feb 2024 (8 months’ time).

The ERC is £4287 

Amount outstanding like £285k

Zoe02

Typhoon2000 said:

Not sure what your question is, but it seems your options are to wait a couple of month to remortgage to another lender or wait 4 months to product switch with Virgin. I doubt it would be worth paying  the ERC to remortgage before then.

Wonered if there was anything I could do to maybe book now and not pay the ERC.

Zoe02

K_S said:

@zoe02 I'm not sure what you mean by '1 of my mortgage', but ignoring that and assuming that it's a single mortgage part -  

With a Virgin fix ending on 01 Feb 2024(?), there are ways to give yourself some optionality.

You could get a re-mortgage offer from a mainstream lender that allows you to stretch the usual 6 months validity. For example Nationwide allows brokers to 'reserve' a product/rate for a client for 90 days with a DIP, and the offer when issued will be valid for 6 months from the date of issue, so that should take you to 01 Feb. Or Platform will allow a 3 month extension on top of the 6 month validity, again taking you to 01 Feb.

Zoe02 said:

Hi All,

I have 1 of my mortgage which is due to end in February 2024.

My understanding was there is no way avoiding the ERC if not staying witht he same lender and the allowed period to renew which with Virgin money is 4 months before (4th October 2023),

A broker called on LBC and said can lock a rate now for 6 months. 

In my case with Virgin money even 6 months from now will not work as it's not ending until Feb 2024 (8 months’ time).

The ERC is £4287 

Amount outstanding like £285k

My other mortgages were ending or the ERC was max £2k so paid and renewed for 5 years but I have the 1 left and it is ending 31/01/2024 and says special rate ends 01/02/2024 so the 1.64% will be ending.

Thanks, will research Nationwide, will a broker have to be used to get extension past the 6 months or can it be achieved directly|?

Next rate increase is 22/06, hearing it on LBC again today has prompted me to take action.

The rate at which rate is rising is alarming, my sister informed me she remortgaged 60% LTV 5 years on the 1st June 4.29%, same product now 4.74% and mine is BTL will be more. 

Not sure if I should just wait and see what happens next year. 

superM

OP I am in similar situation but my fixed rate will end on 31/03/2024. I am with NatWest. I don't think I can do anything with the BOE interest likely to go up again. 

I have no choice. I can only apply for the fixed from Oct. 

K_S

Zoe02 said:

K_S said:

@zoe02 I'm not sure what you mean by '1 of my mortgage', but ignoring that and assuming that it's a single mortgage part -  

With a Virgin fix ending on 01 Feb 2024(?), there are ways to give yourself some optionality.

You could get a re-mortgage offer from a mainstream lender that allows you to stretch the usual 6 months validity. For example Nationwide allows brokers to 'reserve' a product/rate for a client for 90 days with a DIP, and the offer when issued will be valid for 6 months from the date of issue, so that should take you to 01 Feb. Or Platform will allow a 3 month extension on top of the 6 month validity, again taking you to 01 Feb.

Zoe02 said:

Hi All,

I have 1 of my mortgage which is due to end in February 2024.

My understanding was there is no way avoiding the ERC if not staying witht he same lender and the allowed period to renew which with Virgin money is 4 months before (4th October 2023),

A broker called on LBC and said can lock a rate now for 6 months. 

In my case with Virgin money even 6 months from now will not work as it's not ending until Feb 2024 (8 months’ time).

The ERC is £4287 

Amount outstanding like £285k

My other mortgages were ending or the ERC was max £2k so paid and renewed for 5 years but I have the 1 left and it is ending 31/01/2024 and says special rate ends 01/02/2024 so the 1.64% will be ending.

Thanks, will research Nationwide, will a broker have to be used to get extension past the 6 months or can it be achieved directly|?

Next rate increase is 22/06, hearing it on LBC again today has prompted me to take action.

The rate at which rate is rising is alarming, my sister informed me she remortgaged 60% LTV 5 years on the 1st June 4.29%, same product now 4.74% and mine is BTL will be more. 

Not sure if I should just wait and see what happens next year. 

@zoe02 You mention that it’s a BTL mortgage, in which case Nationwide isn’t an option.

With regard to the Nationwide product reservation, I’ve no idea whether or not it is available direct. This is how it works when through a broker
https://www.nationwide-intermediary.co.uk/products/reserving-a-product

K_S

@superM If you’re really worried, then to give yourself some optionality you could look at getting a remortgage offer from mainstream lenders like Nationwide, Platform, Leeds, Skipton, etc who effectively offer a 3-6 month extension on top of 6 months offer validity. So that could allow you to lock in a rate while waiting to hit the 6 month mark when you have access to the whole of market.

superM said:

OP I am in similar situation but my fixed rate will end on 31/03/2024. I am with NatWest. I don't think I can do anything with the BOE interest likely to go up again. 

I have no choice. I can only apply for the fixed from Oct. 

Zoe02

K_S said:

@superM If you’re really worried, then to give yourself some optionality you could look at getting a remortgage offer from mainstream lenders like Nationwide, Platform, Leeds, Skipton, etc who effectively offer a 3-6 month extension on top of 6 months offer validity. So that could allow you to lock in a rate while waiting to hit the 6 month mark when you have access to the whole of market.

superM said:

OP I am in similar situation but my fixed rate will end on 31/03/2024. I am with NatWest. I don't think I can do anything with the BOE interest likely to go up again. 

I have no choice. I can only apply for the fixed from Oct. 

Just for FYI thought rates are not reserved at DIP stage as full application is not yet made.

Do they all offer extension or it's at their discretion case by case basis. 

K_S

@zoe02 You are right. With most lenders (not all), the only way to secure a rate is a full application. 

The exact mechanics to stretch out a rate validity differ - for example Nationwide will allow a rate to be reserved at DIP while with Platform it's an extension on the mortgage offer.

Where I'm talking about an extension, it's lenders with a policy and process to give extensions, not referring to one off discretionary events. Generally speaking, where the client's circumstances haven't changed, I've never had an issue with getting an extension and retaining the same product/rate with a lender that had a process for it.

Zoe02 said:

K_S said:

@superM If you’re really worried, then to give yourself some optionality you could look at getting a remortgage offer from mainstream lenders like Nationwide, Platform, Leeds, Skipton, etc who effectively offer a 3-6 month extension on top of 6 months offer validity. So that could allow you to lock in a rate while waiting to hit the 6 month mark when you have access to the whole of market.

superM said:

OP I am in similar situation but my fixed rate will end on 31/03/2024. I am with NatWest. I don't think I can do anything with the BOE interest likely to go up again. 

I have no choice. I can only apply for the fixed from Oct. 

Just for FYI thought rates are not reserved at DIP stage as full application is not yet made.

Do they all offer extension or it's at their discretion case by case basis.