Query on when to start looking for a new mortgage

moozer_2

Hi there,

I read somewhere this week that mortgage companies (or perhaps your existing mortgage company - which makes more sense) will agree to a new mortgage deal 6 months ahead of your current mortgage expiring. Does anyone know if this is true?

My fixed rate finishes in October and I'm in a quandary as to move or stay (house has turned out to be a money pit) and whether to get a new fixed rate or go to a variable rate. My thinking is that if a mortgage co. does agree to a new deal, I should start looking now?

Thanks!

herbiesjp

YOu can get an offer from a new lender that will be valid for 6 months, however you have to be careful on two fronts:

1) The actual rate may expire before the offer does
2) If you take a deal with a fixed expiry date ie. fixed rate until August 2010 you will not get the full benefit of the fixed rate, as you will not be able to start the new deal until October

Also if you are looking to sell up, then I would suggest looking at deals, either with your currnet lender or new lenders, with no penalties

moozer_2

Thanks very much for your advice! :-)