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Can I remortgage with only 12 month left

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When my current fixed rate expires I will switch the nationwide SVR.  Obviously this rate is higher than what I am currently paying.  

There will only be 12 months left to pay until the mortgage is paid off.  Given so little time, is it even possible to switch to an alternate product or do I need to suck with the SVR for a year?

Comments

  • Mark_d
    Mark_d Posts: 2,401 Forumite
    1,000 Posts First Anniversary Name Dropper
    I've never come across a mortgage with a term of just one year.  Maybe Nationwide will be able to allow you to book a rate (on your existing mortgage), lower than SVR, for you last year.
    The remortgaging process would likely cost you more than you'd save if you did manage to find a one-year mortgage.
    If I were in your situation I'd be making the maximum overpayments this year and then I'd have little capital outstanding which would be subject to SVR next year.

  • Strummer22
    Strummer22 Posts: 712 Forumite
    Ninth Anniversary 500 Posts Name Dropper Combo Breaker
    edited 8 January 2024 at 10:35AM
    How much is the remaining balance? If, for the sake of argument, you've got £5k left over 1 year, and the SVR would be 8%, you'd repay £5,219 (i.e. £219 interest). If you could fix at 4% you'd repay £5,109. 

    If you think it's worth the time and hassle to save about £110 then you can ask Nationwide. Personally I wouldn't bother!

    Edit: PS if you've got enough saved to pay off the mortgage balance in full, you can do that on your first day on the SVR (there will be no early repayment charge) and you'll pay essentially no interest.
  • I think you’d need to speak to nationwide (it likely wouldn’t be worth switching supplier).
  • jimjames
    jimjames Posts: 18,636 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    When my current fixed rate expires I will switch the nationwide SVR.  Obviously this rate is higher than what I am currently paying.  

    There will only be 12 months left to pay until the mortgage is paid off.  Given so little time, is it even possible to switch to an alternate product or do I need to suck with the SVR for a year?
    I'm sure with Nationwide it's possible to switch to a product with term longer than the remaining. We've cleared a few of our Nationwide mortgages over the last few years and all were completed before the term of the mortgage.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • london21
    london21 Posts: 2,142 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    You are in a good position, in 12 months rates will be lower than today's rate.

    Many lenders allow you to re-mortgage within 6 months of the current fix ending. 
  • Thanks all, especially those doing the maths for us.  We cannot make any more overpayments as we are making the maximum overpayment already  and there will be around 48k left on the mortgage for the last year, so potentially a reasonable amount could be saved if we could switch.   I will speak to them directly when we are 6 months from the end of the fixed term, to see if they can offer some options.

    Will try to feedback the outcome in case others find themselves in this situation.
  • Strummer22
    Strummer22 Posts: 712 Forumite
    Ninth Anniversary 500 Posts Name Dropper Combo Breaker
    You’re paying £48k per year on your mortgage repayments? Blimey, how much did you borrow?? 🤣
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