How to renew fixed rate mortgage ?

Misteek

Hi guys

My friends  fixed rate mortgage with natwest is coming to an end this month...

Current rate is 3.58%

What's the best move now ?  What rates should we settle with?

Do we have to get the remortage with natwest before the current deal ends ? Or is there any cost if we go over or not?

If we change providers, would it cost ? And what's the process ? Is it longer process ?

fergie_

Unfortunately the best action would have been to have booked a new deal at the end of January- before rates started creeping back up again.

If your friend logs into the NatWest account, they will be able to see what NW are offering as a product transfer. This is very straightforward and they can decide whether to self-service or ask for advice.

The other option is to speak to a broker who will do an affordability check and then recommend some different products - which may or may not be more expensive than a transfer with NW. If changing lender, mortgage amount or term, it will take longer and will involve credit checks.

Best advice is to act now before falling onto the standard rate which will be 8.24% with NW.

la531983

Why are you using the word "we" when it's someone else's mortgage? 

Edi81

la531983 said:

Why are you using the word "we" when it's someone else's mortgage? 

I thought that too! 

Misteek

fergie_ said:

Unfortunately the best action would have been to have booked a new deal at the end of January- before rates started creeping back up again.

If your friend logs into the NatWest account, they will be able to see what NW are offering as a product transfer. This is very straightforward and they can decide whether to self-service or ask for advice.

The other option is to speak to a broker who will do an affordability check and then recommend some different products - which may or may not be more expensive than a transfer with NW. If changing lender, mortgage amount or term, it will take longer and will involve credit checks.

Best advice is to act now before falling onto the standard rate which will be 8.24% with NW.

Thanks for that.. so if she sticks to natwest will there be arrangement fees to pay etc ?

Also would you recommend going for a 2 or 5 year fixed rate ? I heard the rates will drop next year.  So just best to do a 2 Yr instead.?

Misteek

la531983 said:

Why are you using the word "we" when it's someone else's mortgage? 

la531983 said:

Why are you using the word "we" when it's someone else's mortgage? 

Because im helping her.

Misteek

Any one. ??

amnblog

Might be a good idea if she gets someone else to help her - like an independent mortgage broker.

Newbie_John

Misteek said:

fergie_ said:

Unfortunately the best action would have been to have booked a new deal at the end of January- before rates started creeping back up again.

If your friend logs into the NatWest account, they will be able to see what NW are offering as a product transfer. This is very straightforward and they can decide whether to self-service or ask for advice.

The other option is to speak to a broker who will do an affordability check and then recommend some different products - which may or may not be more expensive than a transfer with NW. If changing lender, mortgage amount or term, it will take longer and will involve credit checks.

Best advice is to act now before falling onto the standard rate which will be 8.24% with NW.

Thanks for that.. so if she sticks to natwest will there be arrangement fees to pay etc ?

Also would you recommend going for a 2 or 5 year fixed rate ? I heard the rates will drop next year.  So just best to do a 2 Yr instead.?

Staying with your bank is the easiest and quickest way - it can be done within a day without any additional costs - just a simple click. No need for paperwork, no fees (apart from possible mortgage fee).

Regarding 2 or 5.. I was in the same place last year, the expectation was the mortgages would be significantly lower by now and then return back to normal next year.. and they are now higher than what I've booked - making me regret I didn't go for 5 years deal which was 0.4% cheaper 😅
Saying that, don't rely on expectations but what's a better product in general - 5 years of knowing what to pay or 2 years - more expensive but little bit more flexibility if she decides to move houses etc.

fergie_

Misteek said:

Thanks for that.. so if she sticks to natwest will there be arrangement fees to pay etc ?

Also would you recommend going for a 2 or 5 year fixed rate ? I heard the rates will drop next year.  So just best to do a 2 Yr instead.?

The borrower can choose to pay a fee for a lower rate. Whether it is worth it, depends on the length and the amount being borrowed.

No one knows what the future will bring, but 5 year fixes are currently cheaper than 2y.

dimbo61

Well I have lots of questions because you have given very little information!
Now if your friend does  nothing it might go onto the SVR or it might go onto a tracker deal.
So she needs to read the paperwork she got with the mortgage offer or ring the Natwest mortgage centre.
She can also go onto the Natwest website and look for new deals for existing customers.
However any mortgage broker would also look at the BIG picture 
Age, job, career, long term plans, deals available with other lenders, Natwest current  deals, savings, pensions, etc
If its a big mortgage then shopping round is a good idea