Is it too early to remortgage? by Finance News Bulletin

Published: 02/05/07

My two-year set rate mortgage with Natwest ends on June 30th Is it too almost immediately to apply for a new deal to try and beat the expected go up If so when should I look at applying I am on a 1% punishment if I redeem before the end of June and my mortgage is approx £42,500

DW, DunoonSimon Lambert, mortgages and homes expert at This is Money, replies: If your fixed rate is due to expire at the finish of June, now is the ideal time to be looking around for a new mortgageMost mortgage lenders will subject offers that are suitable for three months and a sizeable number make offers suitable for up to six months The mortgage application process should take around a fortnight to a month, so any offer that you get will be valid and ready for you to switch to when your existing contract runs out

An interest speed rise is widely predicted for the start of May and many lenders have alreadly priced this in and revised rates upwards If you do apply for a contract now and fixed tax fall then, if it will save you money, it may be possible to secure a dissimilar deal in a month's timeMortgage broker London and state says that it provides a rate check service, alerting clientele whose offers are due whether they have still got the best deal For most it is not worth switching but if markets move suddenly it could be value a late change

One thing to be aware of is that there are costs involved in remortgaging and loans often approach with non-refundable reservation or application fees One part of advice is to opt to add these fees to your loan and then overpay to pay them off once the mortgage startsIf you choose to add fees to the loan and your mortgage does not go ahead in most cases the lender will not follow them, whereas if they are paid upfront the money will be lostThis is Money is packed with information, advice and tools that can assist you get ahead and save money

As you have a relatively small mortgage it is not worth opting for eye-catching low speed deals that come with a far above the ground fee Instead, opt to pay a slightly far above the grounder rate with either a abridged fee or no charges Yorkshire Building Society at present has a range of no-fee mortgages with free legal and valuation offers, with a two-year fasten at 599%, and Alliance & Leicester has a two-year no-fee fasten at 5

89%Remember to timepiece out for any loan that locks you in to a higher normal variable rate after the initial deal periodTo compare the cost of different deals, employ This is Money's mortgage calculator to work out journal payments, multiply this by the length of the deal and then put in feesSelect a loan term 12 months (1 year) 24 months (2 existence 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 years) 120 months (10 years)Please select a type of cover Life insurance Home and inside Car Breakdown services Health - medical Health - dental Travel favorite - dog favorite - cat GOThinking about investing in property

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