Mortgage question after rate ends.

dellas1979

Hi all,

Am doing a new build at the moment. I will be on a fixed rate until 2023.

My question is, in 3 years time when the rate is up with the bank, and I want to renegotiate or move to another bank, can I then pay a lump sum off the mortgage? e.g., fix it for 2 years at a better rate and also pay 10k off in lump sum.

Do banks allow this?

AdrianII

dellas1979 wrote: »

Hi all,

Am doing a new build at the moment. I will be on a fixed rate until 2023.

My question is, in 3 years time when the rate is up with the bank, and I want to renegotiate or move to another bank, can I then pay a lump sum off the mortgage? e.g., fix it for 2 years at a better rate and also pay 10k off in lump sum.

Do banks allow this?

Yes, you can pay as much off the mortgage if you are not in a fixed term. I.e. when your 3 years is up, you automatically go onto a variable rate. Then you can pay off the 10k, then sign up for a new fixed rate if you like.

dellas1979

Thanks Adrian.

Say in July 2023 my fixed rate is up.

I automatically go onto a variable, pay off a lump sum, and then go onto another fixed rate.

When you are on variable, you can fix at any time?

bungaro79

Yep, but just make sure you look around at what other banks are offering too at that time to see if switching makes financial sense for you.

alan partridge aha

Remember house has to be built according to plans or else you can't switch.

Know a couple who had to get retention on a garage because it wasn't on plans. Once it was approved then they were allowed switch.

dellas1979

alan partridge aha wrote: »

Remember house has to be built according to plans or else you can't switch.

Know a couple who had to get retention on a garage because it wasn't on plans. Once it was approved then they were allowed switch.

Thanks Alan. Didn't know that!