Fixed Rate up..

[KAZZA]

Just wondering, we are just finishing a 2 year fixed rate in November and we have been told by our broker that we have to re-apply for our mortgage again. Just wondering if this is normal procedure as I have never heard of having to do this before.
Thanks

 

[irishlinks]

Dig out the mortgage documentation from the lender - it should say what happens after the fixed period is over. There should be no need to involve a broker to stay with the same lender. I suspect the broker might be misleading you and maybe trying to earn a bit of commission by getting you to switch your mortgage to another lender. This could result in you saving money - but maybe not if there are legal fees etc involved. Check with the lender what rate you are going to be on after the fixed rate ends.

 

[KAZZA]

Thanks for that. I might just ring the lender directly and ask them and cut out the broker. So you dont think we should have to go back and re-apply again for a mortgage that we have already been approved for?

 

[Ducky]

I just came off a two year fixed rate and checked my mortgage documentation where I had special conditions at the back for when I came off the fixed rate. I did ring the bank before I had actually checked it and they gave me the wrong information so I'd check my documentation before ringing the bank.

 

[Dave Vanian]

When you come off a fixed rate, you are offered a choice of other fixed or variable rate options by your existing lender. There is no need to re-apply.

You can choose to switch your lender if there's another lender out there offering better terms, but that's a different matter altogether.

 

[KAZZA]

Thanks for that. I did think it was a bit strange to have to re-apply again. Don't know what the broker is trying to do by telling us that. Will just not deal with him.