Do you remortgage every time your fixed rate comes to an end?

[Annoy]

Just that really… We have our first fixed rate deal coming to an end and wondering what to do.

Judging by the houses that have sold recently on our road I would estimate approx £90k increase in value to our house.

Out LTV at this rate would be 57%
Compared to it currently being 78%

Thanks

Following as I am also interested (sorry I don't have an answer for you!)

Surely you have to if you don't have enough money to pay it off? I don't really understand the question as the value of the house doesn't matter does it? It's just how much you owe that needs to be considered 🤷🏼‍♀️

@Fedupsotired no the other option is to just stay on the variable rate with your current mortgage company once the fixed rate ends.

Yes op, we do.

Presumbaly when your fix rate ends you will move to the standard variable rate (SVR) which is inevitably more expensive. So unless you have a very particular deal with extended low rate, yes it's sensible to get a new deal when your fix ends. There's no rule that you have to change lender- if your existing lender offers a competitive deal that can be a really easy option.

Yes cos the full rates are expensive. We have now fixed got 5 years

Depends if the variable rate is cheaper than a fixed rate. I've always got a new fixed rate as its worked out cheaper monthly x

Yes you really should, every time. It is like staying with the same car insurance policy, or mobile phone contract. Once you are out of the deal, your rate is worse. So fix it better - same provider or another, whatever suits you best.

My lender sent some new fixed term offers a few months before it ended which if everything remained the same it could have gone seamlessly onto with a signature. However I wanted to shorten the term so had to remortgage. I went for the best deal I could find for another fixed term. It meant changing lender and it was an annoying process! So if you don’t want to change lenders or the term you can prob go on to a new fixed rate quite easily.

Definetly aim to get a fixed deal!

We have done every time our fixed deal has come to an end every time about the last 20 years .
I think that we had about one month between one deal ending and the next one starting , where we went onto the standard variable rate so that we could make a very large overpayment without it being restricted to a proportion of the balance or incurring fees.

Don't forget to consider the mortgage arrangement fee as well. We moved rate to a low variable rate that is slightly more expensive than the cheapest fixes, but not when you consider the cost of an arrangement fee every couple of years or so, plus we have the flexibility to move whenever we want and have a penalty if we were in the middle of a fixed rate.

Yes, we book an appointment with our broker to discuss it about 2 months before the deal ends & find a good value deal. SVR tends to be a lot higher!

Yes, we normally reduce the term by a year or two at the same time

Yes we do, and thanks to the prices rises we managed to drop down a LTV band and therefore benefited from lower % rates. Also no cost to fix as we stayed with the same lender, applied on line and it was all done in 15 minutes.

Yep - always re-mortgage. You can usually secure a deal up to 6 months before the end too. Defo advisable in this climate as who knows what will happen!

Thanks for your replies!

Sorry, judging from the replies I wasn’t so clear in my op.

I intend to stay on a fixed rate. I just wondered whether many people shopped around other lenders and whether you revalued your house each time.

Thanks

I go to a broker who tells me whether to product transfer with the same lender or change lender.

@Annoy

Thanks for your replies!

Sorry, judging from the replies I wasn’t so clear in my op.

I intend to stay on a fixed rate. I just wondered whether many people shopped around other lenders and whether you revalued your house each time.

Thanks

We use a broker so always compare with other lenders.

You can ask to review the LTV; they'll usually accept the house price index increase (calculator - www.nationwide.co.uk/house-price-index) as standard but you can argue for more.

Our area has increased a lot more than the region (due to crossrail) & we wanted to borrow extra to extend. I found 3-5 similar recently sold properties on Rightmove and used them to evidence my proposed value. Our broker is based in an estate agent so he asked them to verify it too. The new lender accepted my proposed increased valuation.

@Scbchl oh I see 🤦🏼‍♀️.

Sorry! Yes we moved to another fixed rate of 5 years which runs out next January. If we are lucky we may have enough savings to pay the little bit we'll have left over off, if not we'll do fixed again.

We use a broker and change to a new lender and new fixed rate each time.

I have stayed with the same lender as the new deal they offer has always been at a lower % rate then the current deal.

I can't face the hassle of changing to a new provider

Yes shop around to get the best rate, the bank will want to value your house before giving you a mortgage.

I use a mortgage advisor (who is free for me to use) it's so much easier than me spending ages looking for the best deal.

Yes always use a broker as they have access to deals you don’t and sometimes better.

Yes, always, go to a broker about 4 months before the end of the current product

Be sure to take in to account arrangement fees and survey fees etc.
When close to paying down your mortgage it is better to revert to a higher standard variable rate and use the equivalent of the arrangement fees to pay down a chunk of your mortgage.
This was particularly relevant when fixed rate mortgages were often for 2 years less so now lenders are fixing for longer periods. Generally arrangement fees are added to the outset and img balance.
If you know you have an inheritance or a large bonus coming stay on a fixed rate and you are free to pay down your mortgage.