Remortgaging: Benefits of using same lender?

miketong

My discount period is up next month so I need to switch my mortgage over to get a good deal. My current lender is advertising another fixed 2year rate that's better than my current discount which looks appealing but I expect I could find an even cheaper deal if I looked around to other lenders. My questions is:

If you change your mortgage deal with the existing lender, does this offer any cost saving benefits that should be considered when comparing to remortgaging with a new lender?

e.g
1) If you keep the same lender do you still have to pay valuation fees?
2) Do you still have to pay legal / conveyancing fees if you don't change lender?
3) Is it faster to switch deals with existing lender than remortage with a new.
4) Is it less hassle/paperwork etc

Any advice or experience would be welcome!

[Deleted User]

You need to check with your lender. Nationwide offer some fee waivers for remortgaging with them under certain circumstances, but each lender is different.

Burridge60

In order

No unless you want to challenge the valuation being applied by your lender if they use a desk top valuation system

No Unless there is any additional legal work that needs to be done like changing the ownership or borrowers.

Quite likely to be quicker.

Yes a lot less hassle as you don't have to tell the conveyancer where the deeds are or complete loads of forms for the legal work to be done. Also applying another lender will mean evidence of your ID and Address as well as your income will be required. A valuation might be needed.

J4ck_2

I have the same kind of question but slightly different,

I have recently been pensioned off due to ill health and my insurance policy with Halifax BOS paid out on their TMPP insurance plan for twelve months after i became ill, this has now came to an end and i am now back to paying the mortgage myself.

My query is that the BS obviously are now aware of my medical condition and im afraid if i try to go for a new deal that may complicate my existing mortgage. Eg. Currently have life insurance cover and i fear by changing the mortgage arrangments could leave us without life cover.
Also would it be possible for me to change to an interest only mortgage and keep the life cover policy i have at present as this would save me a lot of cash outlay at the present time

Thanks


Any advice would be greatly appreciated.

blueberrypie

J4ck wrote: »

My query is that the BS obviously are now aware of my medical condition and im afraid if i try to go for a new deal that may complicate my existing mortgage. Eg. Currently have life insurance cover and i fear by changing the mortgage arrangments could leave us without life cover.
Also would it be possible for me to change to an interest only mortgage and keep the life cover policy i have at present as this would save me a lot of cash outlay at the present time

In general, life insurance attached to your mortgage will continue regardless of any remortgaging, regardless of what's going on with your health.

However it's usually on a reducing basis - that is, the payout reduces as time goes on, and this has been planned to fit with how much you are expected to owe on your mortgage at any point over the expected term. Switching to interest-only could mean that there is therefore a shortfall if you have to claim on the insurance.