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is it too early to remortgage

Hi

My mortgage deal ends 31st Dec 2008. i.e 1% redemption penalty before then.

Is it too early to start looking for a remortgage?
Been looking at First Direct, their rates went up a few weeks ago and i'm worried the same will happen again if i wait.

I heard mortgage lenders can hold the offer for 6 months? Anyone know if either first direct or woolwich do the same? In that case maybe i could get the application ball rolling and by the time i get the offer it'll be valid for 6 months (provided i don't get offer before 30 June)

Thanks for your help

Comments

  • Little_Mama
    Little_Mama Posts: 925 Forumite
    Hi Medic1978, I phoned FD yesterday and they confirmed that they will hold an offer for 6 months, so, the earliest you can approach them would probably be 30th June/1st July.

    Whislt FD put their rates up they did reduce the arrangement and booking fees....a bit.

    LM :)
    :jMFWin3T2 No 20 - aim £94.9K to £65K:j

  • c0c0nuts
    c0c0nuts Posts: 171 Forumite
    Hi Medic

    I used to work in mortgage retention and have also just redone my own mortgage, i've never heard of a provider offering up to 6 months due to such frequent rate changes-but there may be an exception.
    From past experience the earliest you can enquire about changing your rate is 3 months before your current deal is due to expire.
    Most lenders won't even discuss rates with you before that time.
    It might also be worthwhile contacting your current lender to see what they can do for you as an existing customer.
    Also if you are able to get a cheaper quote elsewhere, go back to your lender to see whether they can match it (saves the hassle of switching) or better the offer-maybe by waiving arrangement fees etc.
    They will be keen to hang onto your business.
    Hope this helps.
    When you get to the end of your tether, tie a knot and hang on.
  • medic1978
    medic1978 Posts: 515 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Hi Medic1978, I phoned FD yesterday and they confirmed that they will hold an offer for 6 months, so, the earliest you can approach them would probably be 30th June/1st July.

    Whislt FD put their rates up they did reduce the arrangement and booking fees....a bit.

    LM :)

    Yes, i thought FD held the offer for 6 months. Question is, how long from application to being made the offer? If it was a few weeks, then i could apply? or maybe i'll just have to wait
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    You could always apply then deliberately delay the application going to offer (e.g. 'forget' to post in payslips, etc.)
  • Little_Mama
    Little_Mama Posts: 925 Forumite
    medic1978 wrote: »
    Yes, i thought FD held the offer for 6 months. Question is, how long from application to being made the offer? If it was a few weeks, then i could apply? or maybe i'll just have to wait

    When I spoke to them and explained my situation they asked me when my fixed rate was coming to an end and that's when they said I could apply 6 months prior to that date.

    My current lender is 3 months, so I will probably just wait until 3 months before so I can compare, also, who knows what'll happen in the next 6 months.:confused:

    LM;)
    :jMFWin3T2 No 20 - aim £94.9K to £65K:j

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