leaving fixed rate mortgage June 2009

Hearts1874

Good afternoon, this is my first post on this site so please don't bite.

I've had a fixed rate mortgage with C&G for the past 4 years paying back my mortgage at a rate of 5.34%. All this talk of "credit crunch" is worrying the wife and I when our fixed rate mortgage deal expires next June (I don't think we will be the only ones :eek: ). We are looking for sound advice on what we should do. Should we try to get a new deal sorted now and incur the penalties? or wait and run the risk of a high variable rate mortgage in 2009?

any advice greatly appreciated, cheers.

dunstonh

Why are you worrying about a fixed rate expiry that is over 12 months away?

Paying fees now to get out of the current deal to pay more fees to go into another is false economy. Stop worrying about it. If your lending criteria is sound, then you have nothing to worry about.

dwsjarcmcd

Hearts,
I agree with Dunstonh, don't worry about it yet. If you have paid your mortgage on time then your backstop position would be a product transfer with C & G. Ok, may not be the best but as I say it's a backstop. If everything is alright with your circumstances then you can remortgage. Wait until February next year and don't pay redemption charges.

David

mpsavuk

June 2009 is a long way off yet. I'm sure the financial markets will be in better shape by then.

Peelerfart

Have to say I agree with the above. 12 months is a long time in this game
Cast your minds back 12 months - who'd have known what a
"credit crunch" was ?

UK007BullDog

If you have any extra cash about at end of month throw it at the mortgage as an overpayment or save it and then use it in June next year to reduce the overall mortgage.

Ian_Griffiths_Halifax

Keep up with any pay ments on Credit Cards, Loans and Mobile Phone Contracts, (a number of Mobile Phone contract payment records now appear on the Credit Reference Agency files) and you should be ok, but the rate you will get on your next mortgage will largely be related to the Loan to Value Ratio (the amount of mortgage in proportion to the value of the house), and your income compared to the size of mortgage you need.

Have either of you changed jobs since taking out the mortgage? Has your wife given up work to look after children etc, as this could effect the amount you could borrow? If not, and your incomes are the same or increased and your other borrowings are the same or less, then you needn't start worrying now.

If you have a clean credit rating, then the chances are you will be the sort of client the banks are looking for ie low risk, clean credit, experienced borrows.

For now though, keep up with payments on all credit committments and put a note in your diary to start looking for another deal 3 months before your current one ends. It shouldn't take 3 months to sort out a new mortgage, but it will be better for you to get something started and delay completion of the mortgage until the penalty ends, rather than rushing around after leaving it until the 11th month, hoping that you'll complete in time and not pay the higher rate on your mortgage with C&G.

Hope this helps.