When can I remortgage?

M_anonymous

Hi, 

I am new to mortgages and the house buying world.

I have a 7.20% (don't ask.... Had major issues getting a lender due to bad debts/poor credit but it was just important to get one at any cost!)  35 year, 2 year fixed mortgage. 
The first payment was made November 2023 

As of December 2024, I have made 14 repayments. 

I am looking at planning ahead to ensure I give myself the best opportunity this time round for remortgaging. 

Jan 2025 would be payment 15 
Feb 2025 = 16 
Mar 2025 = 17 
Apr 2025 = 18
May 2025 = 19 
June 2025 = 20 
July 2025 = 21
Aug 2025 = 22 
Sep 2025 = 23 
Oct 2025 = 24  -   Two Years 

Nov 2025 would then be on to a variable tracker unless a re-mortgage is organised. 

Should I be looking to get a broker involved 6 months before the end of the 2 year fix? 

pramsay13

You might be able to remortgage with the current provider at a more favourable rate without needing a broker, just speak to your provider.
You then need to check the conditions of the current mortgage. Most have an early repayment charge so you are looking at waiting until after the 2 years to remortgage. 
If you used a broker before just speak to them and ask them the best time to start the process as they will know your circumstances. It's unlikely a lot will have changed in 2 years so you might be looking at a similarly bad deal unfortunately.

Yorkie1

Just on the terminology point, "remortgage" usually means changing provider; "product transfer" means staying with the same provider but on a different interest rate. The first will require a full application; the second won't require a full application if nothing else has changed (e.g. duration of mortgage, amount borrowed etc). It might help avoid confusion with the broker to understand the distinction.

M_anonymous

Yes, thank you. I would expect to remortgage. 

At the time my credit history was due to actually fall off in the December 2023 but the house buy had already been delayed from March time with me not being prepared for the house buy. My bank statements needed cleaning up initially which took 3 months as it was then there were difficulties with my deposit and a lender wanting to increase and increase the deposit amount, then having to change lender and start a new application process again.  I was renting from the sellers so they were still getting their rent too which probably helped. 

Now it's just me on this I want to be prepared in 2025 so it's less stress. 

I dug out my folder of documents. 

There is an early repayment charge before the end of year 1 = £5,693.85 
Before the end of year 2 = £3,771.22 
Mortgage exit fee = £115 

The completion date was 20th October 2023 so nothing can be done before then as to avoid the big payouts. The £115 is insignificant price to pay, i assume there would be the other legal costs for a new application anyway.  

It would just be nice to get from 7.2% down into the 4's. So starting the process in June time, works out. 

Hoenir

With such a high rate of interest. Anything that you scrape together to overpay the mortgage would be beneficial.  Check the mortgage documents as 2 years isn't always 2 years. When it comes to the end dates of fixed term products.