How to renew fixed rate mortgage ?

ReadySteadyPop

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.?

Really? I would have thought they might be higher, especially with the political changes in the EU and all the other geopolitical stuff that is going on.

ReadySteadyPop

Newbie_John said:

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.

Mortgage rates are returning to normal, to historical norms.