Second Mortgage

Supoose you had a fixed rate mortgage for the last two years.

And now it’s about to expire. What do you do next? Will your mortgage lender offer you a new deal or he will just change to the standard rate? Well, read on…

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.

First thing you must 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.

You could also google “mortgage rates” “your state” and see what comes up. 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. Moreover, 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.