End of term remortgage advice please

MrTJ_2

We are due to meet with our mortgage lender tomorrow to renew our mortgage as our fixed rate term has ended.

Our current lender has a 5 year fixed deal at 5.63% which we are looking at as we need the security of a fixed deal.

One of the terms says - at the end of the fixed rate period you move to our variable Base Mortgage Rate (BMR) for the remainder of the mortgage term.

Does this mean that we have a legal obligation to take the BMR for the rest of our mortgage with them or would we be able to renegotiate another fixed rate when the time comes?

One other query i have is that the lender asks for a minimum deposit of 25% - does this mean that we have to find 25% of our existing mortgage in order to have the deal even though we have been with them for 10 years?

Thank you very much

herbiesjp

One other query i have is that the lender asks for a minimum deposit of 25% - does this mean that we have to find 25% of our existing mortgage in order to have the deal even though we have been with them for 10 years?

No - you probaly have that built up in the value of the property as your equity

What is the property value and what is the mortgage amount?

MrTJ_2

Hello - The property value is approx £235,000 and the mortgage is for £88,000.

thank you

Martin_Moore

Mr TJ,

Your loan to Value is about 40%. Which is very low and less than the 75% Loan to Value you mention.

You are not required to stay on there BMR or Standard Variable Rate and are frre to shop around if your product did not have an Early Repayment Overhang. They will more than likely offer you a fairly competitive deal as you are the ideal customer they would be trying to keep.

Trying_to_be_good

And it's Nationwide and they'll allow you to overpay upto £500 per month on top of your basic payment, if you can find the extra money.

MrTJ_2

Thanks all for the advice, it is very helpful.