Fixed rate

bella123

hi i am in the process of buying my 1st house and my bank has offered me a fixed morgage at 4.59% for 2 years ,after 2 years will i be able to remorgage??

Woby_Tide

you can remortgage after a month if you want, you'll just be charged to do so, assumiing the deal has no extended redemption though, after 2 years yes you will be able to without 'charge' so to speak

Fairdo_2

As Woby Tide said, this is assuming that there is no overhang of penalty and you should be able to get that confirmed by your bank.

If that is the case, you should start the process about 3 months before the Fixed rate ends.

If you want to be sure you've got the most suitable deal for you, why not go an see a friendly mortgage broker?

Be aware that Remortgaging every 2 years can also start to become expensive on entry and exit. No magic wand, just a possible prediction. Lenders are starting to charge more to get in and out of rates and this trend could continue if market forces allow.

I am a big believer in continuing to check the best deals and do so myself every 2 or 3 years, but that again is where using a Mortgage Broker may be helpful to assure that you do not pay too much for deals.

Joe_Bloggs

If you choose not to move mortgages you may find yourself dumped onto the standard variable rate (SVR). This is often very uncompetitive. To remortgage with another lender at this stage will involve redeption fees say £200 to the old lender and perhaps fees for reserving money/legal services/surveyor with the new lender etc. say £300+.
J_B.

Woby_Tide

also consider the fact that if you maybe take a slightly less competitive deal but with one of the banks/BS who offer consistently good deals it may be cheaper in the long run by taking a new deal out with existing lender when each deal runs out.

I.e. Nationwide are fairly competitive so remortgaging every 2/3 years and only paying an arrangement fee(i.e. no exit/entry fees with new lender) may be cheaper than a lower interest rate now but potential penalties when you leave the deal i.e Halifax and it's new customer only tricks