My fixed rate mortgage is about to expire! Help!?

Question

I've had a fixed rate mortgage for the last two years and its about to expire at the end of March. What do i do next?! Will my current lender offer me a new deal or will it just change to the standard rate? If I switch will I get charged? Any good websites with advice?! Thanks!

Answer 1

If you are in the UK approach your current lender and ask them if they can re-arrange your mortgage to a better product, if they can offer you one the charge should be minimal, if they can't shop around and source all lenders, even the internet have some good offers and the companies use in-house solicitors so fees are still kept low. Good luck.

Answer 2

If you had a two year arm that typically means you had a "subprime" mortgage and it probably had a pre-pay penalty to refinance in that two year period as well. You will most likely need to refinance and over the past two years hopefully your credit rating, income, and/or equity has improved so you can now qualify for a better interest rate and terms.
I am a mortgage broker and only do business in Minnesota but would be happy to advise wherever you live. It is a good idea to shop around some and we ( mortgage brokers/bankers ) can quote without pulling credit and just using some parameters that you would fit into on a best geuss, so while shopping around if anyone tries to tell you they can't tell you anything without an application and credit, move on. Also be aware of suspiciously low quotes, they typically are too good to be true if they sound that way.
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Answer 3

When mine expired I received a letter from the mortgage lender to say it would switch to a standard type - but the rate was really high. I got the details of their current offers and went with a 5 year fixed rate this time. I had to pay a fee to do so but the repayments were so much smaller than the other type that it was worthwhile.
(I am with Nationwide)

Answer 4

You will go onto the lenders variable rate. It depends on who the lender is as to whether they will offer you another fixed rate so you stay with them. If it is a sub-prime lender they generally wont but high street lenders sometimes do.
You wont ge charged when you switch to the variable rate.
Best thing to do is look around and remortgage ASAP or your payments will be all over the place!
I work for a small mortgage/loan broker for people with good or bad credit history so if you need quotes just give us a call (01527 545616) x

Answer 5

Normally when your deal expires your Lender will swith you to Standard Variable Rate.

Some will contact you and advising you that your deal is expiring and telling you what offers the have.

Now is the time to shop around and see who can offer you the best deal.

Don't be afraid to haggle and make sure any fees are fully explained.

Answer 6

Usually you will go to their "normal = expensive" rate. We have just had a rate increase on Base Rate so we can expect an increase on mortgage I suspect.

There seem to be some deals around but most seem to charge a hefty fee to set up so it may not be worth changing

Answer 7

Joe B is correct--- you had an 2/28 Arm, this is normally given to someone who has less than perfect credit (below 620) at the end of the 2 yrs you should have by now raised your credit score enough to get a better fixed rate---

Answer 8

First thing I'd do is call your bank and the bank that placed your mortgage. Let them explain all the different ways for you to either keep that mortgage with its terms and conditions or refinance your mortgage.

I'm sure you could google "mortgage rates" "your state" and see what comes up.

Answer 9

For exellent advice on mortgages call Brockenhurst on 01672 569000. They saved me £230 a month!!