Can I hold a 5 year fixed rate mortgage?
I have 3 years left on my repayment mortgage - can I remortagge presently on a 5 year product? - what happens when I get to year 3 and my mortgage is repaid?. I hold asked the Nationwide but the adviser does not know> In theory I will hold a 3% penalty - but my argument is 3% of nothing is nil
What are your thoughts
Answers:
If you look around you can get a 10 year fixed rate!
You can get a mortgage for any possession the lender will give you - there's no law on minimum length. (Bridge loans can be written for a time of a few months.) Shorter terms will bring the fixed rate closer to the adjustable rate (since the risk to the lender is lower).
If you prepay when there's a balance, the cost applies (either to the original amount or to the balance - read your loan documents). If you refinance the mortgage near the same lender, the prepayment penalty usually doesn't apply (again, read your loan documents).
If your current mortgage is next to Nationwide, and the Nationwide rep can't answer your question, ask to be put through to someone who can.
When you tie in to a fixed rate for however long you can leave the rate but here will be financial penalties, these will be in communication from the inital company you took the loan out with on the Nationwide site it states the following.
Early repayment charges for fixed rate and tracker mortgages
If you repay the loan or make an overpayment of more than lb500 per month inside the initial fixed or tracker term, within the first 5 years of a Lifetime tracker, or inside the first 10 years of the 25 year fixed rate, an early repayment charge will be payable on the entire overpayment amount. The percentage charge payable is detailed in the table below.
Deal Term Percentage Payable
2 years 1.5%
3 years 2.0%
5 years 3.0%
10 years 3.0%
Redemption charge
If you enter into a alien mortgage with Nationwide and subsequently repay your mortgage more than ten years before the inborn term, you will pay a charge (currently lb90) unless you are taking a unmarked Nationwide mortgage at the same time.
25 years 3.0%
Lifetime 3.0%
I suggest that you get this clarified as the financial cost will be a nasty sting if you are not anticipating it, at present , Building Societies can pick and chose who to offer a mortgage to, if you dont want the product on tender you may find it hard to find another as deals are person withdrawn daily.
With interest rates falling I would not tie in. Source(s): http://www.nationwide.co.uk/mortgage/rem…
Go to your local edge and ask for a home equity loan to pay of your mortgage. They have 3,5,7,10 etc.
Best cut, not fees usually.
Mike Source(s): www.alliedhomemortgagepa.net
Related Questions:
Predicted Mortgage Rates?
I just bought a house with an interest rate of 5.5%. I;m planning on selling surrounded by two years. Will my house value stay the same? Will my mortgage rate stay like peas in a pod? (im in Pa) if you knew these answers,you could become...
What are your thoughts
Answers:
If you look around you can get a 10 year fixed rate!
You can get a mortgage for any possession the lender will give you - there's no law on minimum length. (Bridge loans can be written for a time of a few months.) Shorter terms will bring the fixed rate closer to the adjustable rate (since the risk to the lender is lower).
If you prepay when there's a balance, the cost applies (either to the original amount or to the balance - read your loan documents). If you refinance the mortgage near the same lender, the prepayment penalty usually doesn't apply (again, read your loan documents).
If your current mortgage is next to Nationwide, and the Nationwide rep can't answer your question, ask to be put through to someone who can.
When you tie in to a fixed rate for however long you can leave the rate but here will be financial penalties, these will be in communication from the inital company you took the loan out with on the Nationwide site it states the following.
Early repayment charges for fixed rate and tracker mortgages
If you repay the loan or make an overpayment of more than lb500 per month inside the initial fixed or tracker term, within the first 5 years of a Lifetime tracker, or inside the first 10 years of the 25 year fixed rate, an early repayment charge will be payable on the entire overpayment amount. The percentage charge payable is detailed in the table below.
Deal Term Percentage Payable
2 years 1.5%
3 years 2.0%
5 years 3.0%
10 years 3.0%
Redemption charge
If you enter into a alien mortgage with Nationwide and subsequently repay your mortgage more than ten years before the inborn term, you will pay a charge (currently lb90) unless you are taking a unmarked Nationwide mortgage at the same time.
25 years 3.0%
Lifetime 3.0%
I suggest that you get this clarified as the financial cost will be a nasty sting if you are not anticipating it, at present , Building Societies can pick and chose who to offer a mortgage to, if you dont want the product on tender you may find it hard to find another as deals are person withdrawn daily.
With interest rates falling I would not tie in. Source(s): http://www.nationwide.co.uk/mortgage/rem…
Go to your local edge and ask for a home equity loan to pay of your mortgage. They have 3,5,7,10 etc.
Best cut, not fees usually.
Mike Source(s): www.alliedhomemortgagepa.net
Related Questions:
Predicted Mortgage Rates?
I just bought a house with an interest rate of 5.5%. I;m planning on selling surrounded by two years. Will my house value stay the same? Will my mortgage rate stay like peas in a pod? (im in Pa) if you knew these answers,you could become...