2 April 2008

My fixed-rate mortgage deal ends in July. Can I lock into a new deal now, rather than waiting until summer, when there may not be such good, fixed-rate deals on offer? T.C.

Melanie Bien of mortgage broker Savills Private Finance said: Most mortgage offers are valid for six months so you can secure a rate now which will start at the end of July.Another advantage is that you are not committed to any deal you secure in advance. If fixed rates fall, you can opt for a better deal when you remortgage.

However, there are costs to this strategy. Although you do not pay the lender's arrangement fee until you take out the mortgage, lenders often insist on a non-refundable fee of up to £100 to secure the rate.You will also have to pay for a valuation. These are usually valid for three months, so if you secure a rate for longer than that you will have to get it re-typed, which costs about £70.

If you do decide to opt for another mortgage, the new lender will insist on the property being valued again.