Remortgaging (very) early in first term

JackBlack2345

Due to an potential forthcoming change in circumstances, I'm thinking that we might remortgage our 5 year fix with 26 months to go, (20 months if you consider I'd usually have start the remortgage 6 months early). 

I want to lock in a 10 year fix from now, which gives me a very long runway.

Potential early repayment fees aside, what else should I be mindful of?

grumpy_codger

How long is the mortgage, not just the 'fix'? What are you trying to achieve by changing the fixed part now, when the rates are likely to drop further?

JackBlack2345

grumpy_codger said:

How long is the mortgage, not just the 'fix'? What are you trying to achieve by changing the fixed part now, when the rates are likely to drop further?

Mortgage 32 years: 30.5 years remaining

I'm trying to achieve a long runway of time before needing to go through the application process again. I'm setting up a business and I need to move quickly.

MWT

JackBlack2345 said:

Due to an potential forthcoming change in circumstances, I'm thinking that we might remortgage our 5 year fix with 26 months to go, (20 months if you consider I'd usually have start the remortgage 6 months early). 

I want to lock in a 10 year fix from now, which gives me a very long runway.

Potential early repayment fees aside, what else should I be mindful of?

If you are remortgaging you have an obligation to disclose any significant impending change in circumstances which you are aware of...

So if for example you intend to give up the employment/salary that you are using to justify the mortgage, or if you have received a redundancy notice then these are things you might reasonably be expected to disclose... 

... but also consider that as long as you are just taking another 'fix' from your current lender when your current fix expires there will not usually be any reassessment of affordability at that time so it should not limit your ability to re-Fix, unless you want to change mortgage term or get an additional advance, or indeed, change lenders...

Mark_d

JackBlack2345 said:

grumpy_codger said:

How long is the mortgage, not just the 'fix'? What are you trying to achieve by changing the fixed part now, when the rates are likely to drop further?

Mortgage 32 years: 30.5 years remaining

I'm trying to achieve a long runway of time before needing to go through the application process again. I'm setting up a business and I need to move quickly.

You don't need to do the application process again.  When the end of your 5 year fixed rate is approaching, you can "book a new rate" for your same mortgage.  It's like a remortgaging to your same lender - but as your mortgage contract isn't really changing, there's none of the legal work eg. putting a charge on your property.

Yorkie1

You would have to check whether your current lender would allow you to exit the current product and transfer to a new product (even if paying the ERC). I believe some lenders don't allow you to take a new product with them if you're exiting a fix early.

ACG

If you are staying with your current lender, assuming they offer new products you can usually product transfer without having to go through underwriting. 

Im struggling to see the sense in paying 2% in early repayment charges to tie in to a 10 year deal which there are not many of and usually come at a premium.