How many of you switch mortgages?

SexyGreyFox

SexyGreyFox

SexyGreyFox

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My eldest has started working in a bank and last night she was telling me and Mrs Dimple something about mortgages and we got confused.
Now I don't know how long this has gone on for but you can switch mortgages like you can switch your gas.
Back in old peoples day you had a mortgage with a bank and stayed with them for 20 to 25 years but she tells us you can switch as much as you want as long as you pay the charges.

So I'm just interested who has done it and how many times you've done it on the same house?
 
I thought everyone always looked for the best deals.

Surely you search around for cheap car insurance etc so why not for your mortgage.

Ie if I have a 2yr fixed rate mortgage - once thats up I look who is doing the best rate and move
 
If you're on a fixed or special tracker rate for a number of years, and you don't switch or renegotiate another rate when those years are up, you will end up on their extortionate "standard variable rate" - basically a tax on lazy/uninformed people. It's similar to how utilities and insurance companies take advantage of customers not willing to look around by charging them the same/increased premiums year on year.

Staying on the SVR will cost you many thousands of pounds.
 
after your fixed period, you should shop around and find the best deal at the time and go for another fixed term
 
Zefan said:
If you're on a fixed or special tracker rate for a number of years, and you don't switch or renegotiate another rate when those years are up, you will end up on their extortionate "standard variable rate" - basically a tax on lazy/uninformed people. It's similar to how utilities and insurance companies take advantage of customers not willing to look around by charging them the same/increased premiums year on year.

Staying on the SVR will cost you many thousands of pounds.
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Not necessarily, back 10+ years ago when interest rates were 4%+ the SVR was BOE base rate + x, x could have been 1-2%, not a bad deal in today's markets!
 
I wouldn't let my rate go onto SVR. Always remortgage but with less years each time so that it continues counting down from 25 years. Basically stay on initial rate for the period they are set for before SVR kicks in. I.e. 2 year fix then move to a new deal in 2 years.
 
usually sign 5 yr deals and switch at end of it though am currently on a +2.24% tracker with no timeframe and as I only have about 3.75 yrs to go may not be worth switching again
 
With the way the interest rates fell and the deals that were on when I took out my fixed rate, I have let mine drop to SVR since ~2010

The deal was 1.99% above base as I bet they didn't expect base to drop to 0.5% :p

Though when switching you have to do the full calculation. People get so caught up with the low interest rate, they don't factor in the charges - which can be as much as £1 - 1.5k! :eek:

So once you add those in, the lowest % rate isn't always the cheapest over the fixed term.
 
We always switch at the end of the fixed rate period; not only to avoid the SVR but also because having a lower LTV ratio can get you a better deal.
 
chanjy said:
If this is true, and not being old enough to know about this, I'd be genuinely interested if anyone knows when mortgage switching was introduced?
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The only way was to sell your house and buy another with a different bank which we did in 1983.
You probably don't remember but at one time there were only 2 companies providing your gas and electric.
 
We switched deals at HSBC but worked out whether the penalties and sign-on fee outweighed interest (which it did).

HSBC often have a £2k fee as well for fixed rates so definitely worth factoring that in to the rate/term calculation.

As with Tunney, having lower LTV really helps the switching process.

Simple rules with banks and lending in particular - they never lose out!
 
i will switch mine but cannot until June, bit worried that the new government will be in by then, hopefully whoever they are do not effect things that badly in a month that rates change a lot in June time.
 
shatpank81 said:
i will switch mine but cannot until June, bit worried that the new government will be in by then, hopefully whoever they are do not effect things that badly in a month that rates change a lot in June time.
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The bank base rate won't be changing for a while yet.

Not that that stops banks inching up their mortgage rates, but there isn't going to be any dramatic change just because of who is in government.
 
I've just switched to a new 2 year fixed HSBC Mortgage : 1.99% with a £200 booking fee and 80% LTV. 20 years to go :/
 
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