Some special deal mortgages (fixed rates, discounted rates, capped rates, etc) require you to remain with the same lender for a set period of time. This is known as the tie-in period.
With some mortgages, the tie-in period is the same length as the fixed/discounted/capped rate period.
However, with others, the tie-in can sometimes extend for an extra period of time beyond this.
Normally if you want to move to a new lender within the tie-in period you will face redemption penalties from the lender. In many cases a long tie-in period is a bad idea, particularly for people who want a higher degree of flexibility and the chance to re-mortgage regularly or make overpayments.
But, in other cases it may be worth accepting a tie-in period in order to take advantage of a good deal on interest rates in the short-term.
Each individual case is different, and this is just one of the areas where advice from a qualified mortgage specialist can help you make the right choice for your own circumstances.
To get in touch with a mortgage broker, please fill in our mortgage quote request form.