If you know that your current mortgage deal is coming to an end then it's almost certain the next deal you look for will cost you more. The days of cheap lending are over - for now. Most lenders allow you to 'book' a rate form their current range of mortgages up to three months in advance of the expiry of your current mortgage deal and this is often a no charge and without tying you into a deal. So therefore if rates drop within the three months, you can walk away from this mortgage and go for a different deal - or even a different lender.
You don't need to be loyal to your existing lender - it's an open market out there and you are free to choose who you like to borrow money from. Your current lender may offer you an incentive to stay with them - but look around as better deals are often found elsewhere. However, make sure you look into any charges that you may have to incur if you move mortgages. Some lenders charge exit fees to leave them and administration fees a t the new lender. But you may save a lot of interest by switching so do the maths and weigh it up.
Do bear in mind that your stated monthly mortgage payment is a minimum and that often lenders often allow penalty-free over-payments provided they do not exceed 10% of the original mortgage value each year. But ask about the terms for this as some lenders have a month limit that you can overpay if you are tied into a deal. If you can actually pay a little more off you mortgage now - it will allow future flexibility if money gets a little tight. For example you may want to later underpay and the rate at which you overpaid.
Andy has been writing articles for several years. Check out his latest website on coat rack stands which gives people help and advice to find the best deals for coat rack trees.
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