Fees when re-mortgaging with the same lender?

Savernotspender · 19 February 2015 at 1:28PM

Hello,

My current fix deal will be finishing in a few months and I just had a few questions about re-mortgaging which I'm hoping someone might be able to help me with.

If I got a new fix with the same lender (Tesco) will I still have to pay the same fees as if I was coming from a different provider? I've had a look at the website but it's not clear to me.

Also how long before the end of my fix should I start the process of getting a new one? (I don't want to go onto the SVR if I can avoid it)

Many thanks for any help.

Jimbo1976 · 19 February 2015 at 2:21PM

You would need to check with Tesco what fees it would charge you for a new rate from them. Clearly you won't have to pay for a valuation, conveyancing, CHAPS etc but it may well charge some product fees.

You should start now as this would give you time to choose another lender if Tesco won't offer you a new deal or if the deals it offers you are uncompetitive.

kingstreet · 19 February 2015 at 2:26PM

A customer retention product from your existing lender is not a remortgage and you should not look at remortgage products on your lender's website.

These are for borrowers moving their mortgage to the lender, as you would be if you moved your mortgage to a new lender, that actually is a remortgage.

Lender customer retention products may see a lower rate in exchange for a higher fee and you will need to work out if that is of benefit to you.

Valuation, survey, legal and similar costs do not apply to those taking a customer retention product from their existing lender but they may apply to a remortgage.

Savernotspender · 19 February 2015 at 3:17PM

Thanks very much for your replies.

That's good to know about the customer retention products as opposed to a re-mortgage. I know that Tesco say that before the end of the fix they will write and offer other products so it will be interesting to see what is offered. (I'm guessing you can't browse these deals unlike the re-mortgages)

I think it took about two months to get on this deal so I know that I'll need to start early in order to avoid the SVR. Is it possible to start too early or like switching fixed rate ISA's can you tell them the date the deal ends and then they wait til the end of the fix?

Fees when re-mortgaging with the same lender?

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