Mortgage got 31 months left but need new rate.

Soconfused14

So my mortgage has only just over 3 and half years left til its paid. But my current deal ends in 6 months.
Is it worth remortgaging or should I just fix with current provider?
But if I fix with current, their offers are for 2 year or 3 year, so how would that work?

silvercar

Stick with your current provider and you would fix for the length of the fix and then be back on the SVR for the remainder.

Move lenders and you could choose a new length for your mortgage.

either way, look at the arrangement fee, if it’s too high it may not be worth fixing at all!

ACG

Your balance will be that low, its unlikely to make sense moving lenders due to costs. 
But you will likely need to do a 2 year fix and then sit on SVR for maybe 12 months. 

FrugaiMacDugal

Soconfused14 said:

Mortgage got 31 months left but need new rate

So my mortgage has only just over 3 and half years left til its paid. But my current deal ends in 6 months.
Is it worth remortgaging or should I just fix with current provider?
But if I fix with current, their offers are for 2 year or 3 year, so how would that work?

31 months is just over 2 and a half years, that might change your thinking.

saajan_12

You can change the length of your mortgage when you get a new mortgage application, so either up payments to be a 2 year or reduce to be a 3 year, either way with the term matching the fix period. 

OR you could leave the term as is and get a 2 year fixed, then moving to an SVR for the last bit (when the balance is low anyway). 

Either way, you should check the total interest + fees. You may find a slightly lower rate (which only applies to a small balance) is actually much more expensive once you take the fees into account. 

la531983

And if you have a period at the end that is on the SVR you may want to make the maximum overpayments allowed before that point (which likely wont be much given the balance size)

Yorkie1

saajan_12 said:

You can change the length of your mortgage when you get a new mortgage application, so either up payments to be a 2 year or reduce to be a 3 year, either way with the term matching the fix period. 

OR you could leave the term as is and get a 2 year fixed, then moving to an SVR for the last bit (when the balance is low anyway). 

Either way, you should check the total interest + fees. You may find a slightly lower rate (which only applies to a small balance) is actually much more expensive once you take the fees into account. 

As the OP's remaining term is < 3 years, a request to extend the term to 3 years is likely to be treated as a formal application, with full affordability checks etc. Not worth the hassle.

Yorkie1

la531983 said:

And if you have a period at the end that is on the SVR you may want to make the maximum overpayments allowed before that point (which likely wont be much given the balance size)

It will depend on the T&Cs of the product. Nationwide allows 10% of the original loan every year, irrespective of the balance.