When to apply for a new mortgage?

Dinkydong_2

Our current 5 year fixed mortgage (Yorkshire BS 4.09%) comes to an end in September. I wish to replace it with another 3 or 5 year fixed deal.

Do mortgage companies accept applications for re-mortgages 5 months before the date you want to switch?

In the current climate of lenders pulling mortgage deals and mortgage rates going up (despite BoE rates going down!) I would like to snap up a deal ASAP!

Any advice / insight would be appreciated.
:beer:

_Andy_

Hi and welcome to MSE.

It varies lender to lender but many lenders will keep an offer open for up to 6 months.

Dinkydong_2

Thanks,

As I don't live anywhere near a Cambridge BS branch, Abbey's 5.59% fixed until June 2013 looks about the best five year fixed deal able now :mad:. I'll be on the phone to them tomorrow.
:beer:

MortgageMamma

Go through a broker, they can submit an application to cambridge bs on your behalf, and there may be something more competitive anyway come Monday. You are right addressing this now with the problems we are experiencing with funding mortgages, but holding out over the weekend won't hurt.

MM

hostertlady

go through a broker and apply at least three months before the due end date/

MarkyMarkD

Please, brokers, don't advise people to apply for fixed end dated, fixed rate deals 5 months before their existing mortgage deal ends.

If people really want to apply so early - and I can see why, in this market - either they need to go variable or they need to choose one of the (few) lenders who don't end-date fixed rate products - such as Nationwide. I'd be interested to hear which others are not end-dated, but most are.

Otherwise people will end up with 4 yr 7 month or (worse) 1 yr 7 month fixed rates, which isn't what they thought they were getting into.

MortgageMamma

If the people you referring to took advice in the first place they would know that!

MarkyMarkD

It would be nice to believe that brokers would all point out the difference between a Nationwide 5 year fix, bought 6 months early, and AN Other lender's 5 year fix, bought 6 months early.

But depressingly I suspect that some of them will just advise based on the rate and ignore the obvious disadvantage of the AN Other lender product in this circumstance.

I would always suggest that people take advice though. It is interesting that the OP has already mentioned choosing a 4 year 9 month "5 year product" without noticing the problem.

MortgageMamma

good point mark, and in my view it is a problem - but its down to an individual if they consider it a problem

to be honest at present i like lifetime trackers with no ercs, but they are not for everyone

I'd also love to see more capped products around

MarkyMarkD

It's amazing that capped rates haven't come back into vogue, now that the general expectation is for rates to fall. A capped rate deal would be a very nice proposition.

I understand your point, too, MM - if you want a 4 year 7 month fixed deal, that's fine. But it's also not fair to compare a 4 year 7 month fixed deal to a 5 year fixed deal, based on monthly payments or total cost over the fixed term, for example.

aah

but will mortgage rates fall along with general interest rates? doesnt seem to be whats happening just now.

many of us just see products withdrawn and its really scary. my fixes - on 2 mortgages - both residential - come to an end in August and October - and I keep thinking I gotta get on the bandwagon now....

is that not the best thing to do?