Nationwide loyalty remortgage question

amscss

I'm currently on a fixed rate with nationwide which is due to end at the end of November. I'll probably remortgage with the nationwide onto another fixed rate deal but have a couple of questions on this:

1. How far in advance would you normally need to start arranging things if you're planning to stick with the same lender? Should I be arranging meetings with an advisor there fairly soon or would it be a few weeks before? Also would going for a fixed rate instead of a tracker make any difference (in terms of timing)?

2. In terms of a property valuation, is that something we'd normally have to pay for again if we're staying with the same lender or would they organise that? The valuation from 3 years ago is a bit less than my flat is currently worth but I need them to use a recent valuation as on the old value I'd just be over the 75% LTV level, but on current value I'd easily get the less than 75% LTV rate which is significantly lower than the 90% LTV rate.

In general I'll probably stay with Nationwide as it will be less hassle and they've also got what appear to be competitive deals for loyalty remortgages with no fees.

koexelek

I think with Nationwide, you can book a rate three months in advance.
They haqve some great loyalty deals at the moment, so it might be as well to talk to them sooner rather than later

Most lenders have an index linked valuation of the properties they have mortgage on. So as long as Natyonwide are happy that your borrowing is less than 75%, you should not need a new survey

Locoblade

Yup, Nationwide estimate the value now based on when you bought it. Mine we bought 4 years ago at £190k and they now value it at £220k. Its not foolproof because if you bought a rundown house and have spent £20k improving it they wouldnt take that into account without a new valuation, but if you haven't spent too much on it then their valuation should be OK.

Locoblade

There's a calculator on their site here by the way, which I assume should give you a similar result to what they'll value it as.

http://www.nationwide.co.uk/hpi/default.asp

Woby_Tide

koexelek wrote: »

I think with Nationwide, you can book a rate three months in advance.

I think there is a quirk that can extend it up to around 4 months in advance, i.e. they forward date the application to only start on a certain date, then that offer is valid for anytime up to 3 months after that. I know on our last remortgage we mananged to book onto the new deal about 3 1/2 months in advance as it was being withdrawn the following day but the advisor showed us how to keep our existing fix running as long as possble before switching to the new higher rate, thus reducing the small redemption fee.

koexelek

Woby_Tide wrote: »

I think there is a quirk that can extend it up to around 4 months in advance, i.e. they forward date the application to only start on a certain date, then that offer is valid for anytime up to 3 months after that. I know on our last remortgage we mananged to book onto the new deal about 3 1/2 months in advance as it was being withdrawn the following day but the advisor showed us how to keep our existing fix running as long as possble before switching to the new higher rate, thus reducing the small redemption fee.

I think sometimes, Nationwide will waive the fee if there are only a few months left and the client is going straight on to another deal.

However, at the present time, it is likely that the new rate won't be as good as the old one, so not really a lot of point in doing that.

amscss

Thanks for all the info.

The hpi calculator and info on valuations is useful - I've just tried it and based on those calcs I'd come in at 62% LTV so I'd have a lot of leaway even if they didn't use that measure.

I just need to decide now whether to lock in just now to a new fixed rate or hold off on the hope that rates might fall a little further before november - I think I'm inclined to maybe wait another month or so as the rates seem to be on a slight downward trend at present.

I'm just glad in many ways that I should have no fees to pay to extend onto a new fixed rate - I accept that payents will be a lot more compared to currently on my 4.59% fixed rate but have factored that in and have overpaid for the last few months to get used to the increased repayments.

BillTrac

amscss,

jus got back home after speaking to an advisor at NW, our 5-year fixed is ending Sept 30. Was 4.59. We only need another 5 years and the mortgage is finished. Now it is going up to 5.78. I have reserved this and can delay until 20th of September. If their rates come down I can take advantage.

And no fee. They have one option which gives a slightly lower interest rate but has a £1499 fee which isn't really an option on a 5-year deal, as we only have £19000 to clear.

Bill