Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Gti
    • By Gti 17th Dec 17, 7:52 PM
    • 47Posts
    • 3Thanks
    Gti
    First time remortgaging
    • #1
    • 17th Dec 17, 7:52 PM
    First time remortgaging 17th Dec 17 at 7:52 PM
    I bought a house with a 2 year fixed mortgage at 1.99% with Accord, LTV of 75%, which is ending in February next year.
    They have sent me a letter saying they estimate with their house price index accounting for house price increases my new LTV to be 62.25%. If I did continue with them is this definitely the figure they would use or would they send a valuer round?
    The new value would be on the low side locally but I'm only halfway through renovations so I wouldn't challenge it.

    When remortgaging do you still need to hire a conveyancer/solicitor if staying with same lender? What if you go with different lender?

    I was thinking of fixing for 5 years, they have offered me 1.92% with £995 fee or 2.12% with no fee. Am I likely to get much better elsewhere? What if I overpayed to get into the 60% LTV band?
Page 1
    • flashbang
    • By flashbang 17th Dec 17, 8:55 PM
    • 20 Posts
    • 11 Thanks
    flashbang
    • #2
    • 17th Dec 17, 8:55 PM
    • #2
    • 17th Dec 17, 8:55 PM
    Can't speak from any great experience but had similar situation a year ago with Leeds Building Society mortgage. As an existing customer looking at remortgaging they provided a valuation online which seemed about right. We were able to transfer to an alternative product with them without any credit checks or valuer involvement. They only seemed to be interested if you wanted to increase borrowing or make significant changes to the deal outside of the products they offered to us online.
    • Gti
    • By Gti 18th Dec 17, 4:37 PM
    • 47 Posts
    • 3 Thanks
    Gti
    • #3
    • 18th Dec 17, 4:37 PM
    • #3
    • 18th Dec 17, 4:37 PM
    How long did the remortgaging process take you with the same lender? I have until middle of February but I'm sure nothing will be done over xmas if I applied now.
    • Alisha2008
    • By Alisha2008 18th Dec 17, 5:17 PM
    • 1,046 Posts
    • 570 Thanks
    Alisha2008
    • #4
    • 18th Dec 17, 5:17 PM
    • #4
    • 18th Dec 17, 5:17 PM
    For us it took about 2 months, staying with the same lender.
    • kingstreet
    • By kingstreet 18th Dec 17, 5:19 PM
    • 32,620 Posts
    • 17,560 Thanks
    kingstreet
    • #5
    • 18th Dec 17, 5:19 PM
    • #5
    • 18th Dec 17, 5:19 PM
    Stay with existing lender = product transfer or customer retention product. No change to mortgage deed, no solicitor and usually no status/affordability checks. Automated valuation.

    Remortgage = new lender. Change to mortgage deed, conveyancer needed. Same status/affordability checks as a purchase and usually a valuation inspection is needed. Maybe automated at lower LTVs.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • getmore4less
    • By getmore4less 19th Dec 17, 8:59 AM
    • 31,168 Posts
    • 18,681 Thanks
    getmore4less
    • #6
    • 19th Dec 17, 8:59 AM
    • #6
    • 19th Dec 17, 8:59 AM
    I was thinking of fixing for 5 years, they have offered me 1.92% with £995 fee or 2.12% with no fee. Am I likely to get much better elsewhere? What if I overpayed to get into the 60% LTV band?
    Originally posted by Gti
    Its not just the rate but the total fees, the bigger the mortgage the more fees you can take for a lower rate and be better off

    1.92% £995 fee or 2.12% on a 5y fix break even is between £110k &£120k depending on term(34y-16y).

    depends on lender where there break points are for better deals,

    what are Accord offering on 60% to see if it is worth overpaying now or even take a 2y fix to be below by then.
    • Beetroot24
    • By Beetroot24 20th Dec 17, 4:07 PM
    • 29 Posts
    • 29 Thanks
    Beetroot24
    • #7
    • 20th Dec 17, 4:07 PM
    • #7
    • 20th Dec 17, 4:07 PM
    We've just remortgaged with Nationwide. They didn't require a survey (apparently they had enough info on our property already, and we are at 45% LTV), but they offer free valuations anyway. Although we had to pay legal fees, we will get £500 cashback which will cover those, and then some
    • Gti
    • By Gti 9th Jan 18, 4:32 PM
    • 47 Posts
    • 3 Thanks
    Gti
    • #8
    • 9th Jan 18, 4:32 PM
    • #8
    • 9th Jan 18, 4:32 PM
    Accord don't seem to offer anything at 60%.
    Mortgage is ending next month so I think I've left it too late to jump ship.

    My mrs has been doing some calculations and reckons it's better to go for a 5 year fix at 2.12% whilst overpaying £995, instead of taking a 1.92% and £995 fee. Is it really better to overpay a grand and take the slightly higher interest? If so, whats the point of the mortgage with the slightly lower interest and fee?

    While no one has a crystal ball, is the general advice to take a longer term fix right now as interest rates aren't likely to be much lower? Brexit is an unknown quantity but I can't see it being like 2008 in the near future.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

175Posts Today

1,565Users online

Martin's Twitter