Remortgaging with existing lender (Britannia)

liubeliu

Dear All

Soon to come out of current Fixed rate but need to investigate whether a SVR or a new fixed will be better.

We do not want to increase outstanding amount but do wish to lower the remaining term. On expiry of current fixed will have 22 years left. Would want to sign up to a new deal with a term of 15-17 years to ensure we pay more capital off.

If we stick with Britannia would we have to go through application process again or because we are not increasing loan amount would they just switch us to new product based on valuation and payment of relevant fees.

Many thanks

kingstreet

It's not a remortgage, it's a product transfer, so no forms to fill in, no credit checks etc.

If the product you move to has fees, these will probably be added to your account, so pay them off as quickly as you can as interest will be charged on them.

I would counsel you against reducing the term, as you cannot be sure the higher payments will always be affordable. Pick a new product which allows you to overpay each month and you can do this voluntarily, paying the normal payments if you ever have unexpected overheads.

liubeliu

kingstreet wrote: »

I would counsel you against reducing the term, as you cannot be sure the higher payments will always be affordable. Pick a new product which allows you to overpay each month and you can do this voluntarily, paying the normal payments if you ever have unexpected overheads.

Thanks, I hadn't thought about that, sounds obvious once pointed out.

friendlymortgageadviser

Hi,

Even though it may be hassle free to stay with Brittania it will still be worth looking at the 'whole of market' as there are some very competitive deals available at the moment.