had a mortgage with A&L for 9 years.....how do i go about changing provider?

teacherandmum

sorry for such a long winded title .................

i have 2 mortgages (one taken out as first time buyer, another to 'top up' so we could move to a bigger house) with A&L.
At the moment, they have just come out of their fixed terms and we are currently paying 4.99% on one part (around £30k) and 1.99% on the other (around £35k). We pay £540.77 a month now with noth combined.

i really have no idea what to do now. can i just ask some really daft questions.
a) can i now put both parts together and just have 1 mortgage package?
b) how do i go about switching my mortgage to another provider if i find a deal i think is better than A&L/Santander?
c) is switching my mortgage the same thing as remortgaging? if so, what do i say my deposit will be?????

as i said, daft questions but looking for a good deal as have gone to part time work since having the kids.
any other advice would be appriciated too.

waddy80

Yes switching your mortgage is a remortgage.
How much is your house worth? The difference between your mortgage amount and this amount is your deposit or Loan to value (LTV). Some mortgage deals will for example only want you to borrow 60% LTV (for example a house worth £100k but only borrowing £60k)
Just apply for a mortage with another provider for the full amount. My advice is to see a mortgage broker who will go through it all with you.

teacherandmum

just checked and it was £506 payment this month

waddy80 - thanks for the reply. we had the house valued a few months back and it was worth £135k. so our LDV would be around £70k

theres a broker in the nearest town that i could go to. I might look online so i have some ideas before i go. Do brokers charge a fee? what would a 'normal' fee be?

waddy80

teacherandmum wrote: »

just checked and it was £506 payment this month

waddy80 - thanks for the reply. we had the house valued a few months back and it was worth £135k. so our LDV would be around £70k

theres a broker in the nearest town that i could go to. I might look online so i have some ideas before i go. Do brokers charge a fee? what would a 'normal' fee be?

Yes brokers do tend to charge a fee. I work in a bank so never used one myself! We often have people coming in asking for quotes etc, so there is always that way of doing it.
Try reading martins re-mortgage guide
http://www.moneysavingexpert.com/mortgages/remortgage-guide

Morgage_Confused

you want to keep that 1.99 rate if possible. just remortgage the other part with your lender. ask them what they can offer first.

have you overpayed the 1.99 rate at all?

Thrugelmir

Personally I would keep what you have.

Merely channel overpayments into the higher interest part.

dimbo61

The 1.99% part of the mortgage is very good and you dont want to lose that by remortgageing to another lender so you need to ring A/L on 0800 092 3881 to see what they can offer

kingstreet

Ask your lender for a customer retention product, or product transfer, on the £30k on 4.99? (?) (sure it's not 4.79% the Santander SVR for A&L borrowers?) and tell them UNDER NO CIRCUMSTANCES are they to change the product on the bit you have at 1.99%.

Remortgaging is moving to a new lender and that means moving your whole mortgage and that means you lose the 1.99% section. You need to avoid this! You have one mortgage, split into two sub-accounts, you don't have two mortgages.

teacherandmum

thanks everyone.
I thought the 1.99 was too good to get rid of so think i'll ring Santander and ask what they can offer me based on keeping 2 sub accounts (ie keeping the 1.99 and getting a deal on the 4.99).

the 1.99 hasnt been overpayed at all, it was what they offered me when a 5 year fixed deal came to an end

thanks again everyone

Thrugelmir

teacherandmum wrote: »

the 1.99 hasnt been overpayed at all, it was what they offered me when a 5 year fixed deal came to an end

thanks again everyone

Wasn't offered it was your contractual right.

All fixed term products will have either a specified default rate or will drop onto the lenders SVR(s).

goodanna

theres a broker in the nearest town that i could go to. I might look online so i have some ideas before i go. Do brokers charge a fee? what would a 'normal' fee be?