Mortgage deal ends

KGB73

Hi all, trying to plan ahead. In 18months my 2yr remortgage deal will end and I will owe around £16800.  Ive been told that lenders wont be interested in lending such a small amount unless its iver 3 years (which works out expensive) what will i do at the end, i dont have enough savings to cover all of the £16800 and dont want an expensive loan, or to do 3 years mortgage.

bluelad1927

Surely you will just automatically go on your current lender standard rate? 

grumbler

Or variable rate (allowing big overpayments) with some other lender. However, there will be some setup fees in this case.

Hoenir

Fix the remaining balance onto a new product with your existing lender. 

MWT

KGB73 said:

Hi all, trying to plan ahead. In 18months my 2yr remortgage deal will end and I will owe around £16800.  Ive been told that lenders wont be interested in lending such a small amount unless its iver 3 years (which works out expensive) what will i do at the end, i dont have enough savings to cover all of the £16800 and dont want an expensive loan, or to do 3 years mortgage.

How long will be left on your mortgage term at that point?

KGB73

Thanks, not sure i explained.  I may well be able to to stay with my current lender on their variable rate at the time, but this will be expensive (more expensive than a fixed deal), other lenders are unlikely to offer a mortgage for such a small amount unless its over 3 years or more, which will cost more in interest (because it is a 3 year term). 

dimbo61

So look on your lender's website site for New deals for existing customers.
If you don't like the deals on offer then consider a Fee free mortgage deal with an Offset mortgage provider.
You borrow the minimum  amount  and put all the extra  money above the £16,800 you will owe into the offset account.
Now you could also look at trying to overpay every month to reduce your debt and pay the mortgage off ASAP 

kingstreet

KGB73 said:

Thanks, not sure i explained.  I may well be able to to stay with my current lender on their variable rate at the time, but this will be expensive (more expensive than a fixed deal), other lenders are unlikely to offer a mortgage for such a small amount unless its over 3 years or more, which will cost more in interest (because it is a 3 year term). 

There are lenders sourcing on my system for a two year £16k remortgage. Products are fee-free and offer free legals. At the right time, you'll need to do your research and not listen to ill-informed "advice."

dimbo's suggestion is also valid.