2 mortgage questions

pinkles

1. Im just wondering (on average ) how long people are waiting post - mortgage approval to actually getting sorted. ive read various reports. some as long as 6 months.
2. (forgive my ignorance here - but im rather green on this issue....
in the current climate(relative stability) ...is a fixed rate much more preferable to a variable?
what is the max period you can get a fixed rate? we have noticed some banks gave only 5 year fixed. others more. what happens after that 5 year period?
is the mortgage rate then negotiable?
totally clueless. would appreciate any help!

phormium

The answer to your first question is 'how long is a piece of string?'. It's the sort of question there is no answer to as so many situations are different, depending on solicitors/banks/vendors all sorts of things can affect the speed at which you draw down a mortgage.

Regarding fixed rates, I'm not familiar with what is out there at the moment but in general there is a lot to be said for a fixed rate as it gives you certainty as to what the payments are so if you get a good one it's well worth considering for the peace of mind. Different banks do different terms so there is no set length as such. When the fixed term is up then usually you will get the option to fix again if fixed rates are available or you will go to the variable rate available or any other options that might be available to you such as loan to value rates if they apply.

lau1247

regarding after fix term end, i think most bank give you option to fix further or go to Standard Variable Rate. Note it is not LTV variable rate and as such is often higher.

Check your lender's terms and conditions.