Re mortgaging with same lender

mose_2

Hi, when remortgaging with the same lender in my case Santander, what do they need to know? For example do they ask for pay slips and bank acct statements still? The problem we may have is that my wife is on maternity leave for a year and her pay has started to go down.

dimbo61

As long as you are not borrowing more money they will not check your income as they have already lent you the money.
What you need to do is see what rate you go on to after the FIX? ends and see what Santander can offer you with your LTV.
Wife off on maternity leave soon and possible part time afterwards ?
Young son/daughter to think of please take a long term view say a 5 year fix ???? as your wife may be back to full time work when you need to remortgage

mose_2

Wife going back next summer, shes the main income. Only want 5 year fix, they have offered me 3.99% which isn't the best but in the grand scheme of things I don't think to bad. Will be on the svr 4.75% I think so big difference to the rate we are on now (3.19% tracker)

Pont

I was in a similar position. Phoned Sandander after fix had ended to see what was on offer re:a 5 year fix - absolute carp! Factor in any fees (if your mortgage is small(ish) maybe not worth it). My LTV is approx 60%, arrangement fees were circa £1000, I did the calcs and felt their 'offer' was not one I was interested in.

I ended up going with Mr T's offer of 3.39% , £1000(ish) arrangement fee, but cut 7 years off my term for £10 a week more than I'm paying right now.

Currently pay £530 pm - will increase to £549pm. Total cost including extra £19 a month (£19 X 60 = £1140) and arrangement fees (£1000), and exit fee (£225) = £2365 extra over 5 years = £39pm extra to cut term by 7 years. Currently have 22 years to go with Santander so re-mortgage with Mr T at 17 years (less 5 year fix) down to 12 years outstanding for £10pw extra - I'm a happy bunny!

Don't rain on my parade and tell me I've calculated wrong!

OP, shop around and factor in ALL associated costs - GL

kingstreet

<pedantmodeon> A new product from the same lender is known as a product transfer, or a customer retention product. A remortgage involves changing lenders, which needs a new mortgage deed to be drawn up.

It's better if we separate the two, otherwise, we'll get existing borrowers looking at their existing lenders' websites for remortgage products and these are for new borrowers only.<pedantmodeoff>

mose_2

only fee is £124 product fee. 70-75% LTV, Have been AIP by nationwide 3.29% but LTV is close on the limit for that rate and fear valuation will be just under pushing us up to the next rate of 3.69%, still better BUT we have the hassle of telling them about maternity leave and all the paperwork that goes with remortgaging with different lender.

Pont

mose wrote: »

only fee is £124 product fee. 70-75% LTV, Have been AIP by nationwide 3.29% but LTV is close on the limit for that rate and fear valuation will be just under pushing us up to the next rate of 3.69%, still better BUT we have the hassle of telling them about maternity leave and all the paperwork that goes with remortgaging with different lender.

Seems like you've done your research and can see your point about going into the 'ins' and 'outs' of your circumstances with a new lender.

Just as an extra have you thought about consulting with an 'all of market' mortgage advisor? I did when I bought my house and she was worth her weight in gold. She instantly discounted providers I would have spent days trawling through their blurb as I didn't meet their criteria. When we found a provider that would take all of my financial details into consideration, she made a few calls, and I was approved within 48 hours. I paid £250 for her service but it was worth alot more to me in time and effort.

Maybe worth a call to a broker if your circs have changed.

KeithyT

Although I don't have the regular income issues/questions of the original poster, I also wanted to avoid the relative form-filling hassle of re-mortgaging with a different provider and have been reading the various ups and downs of various forum members with Santander's rates for existing customers.

It might be worth the OP phoning Santander back a second time for revised rates. I was after a 3 or 5 year fixed rate and late last week was offered 3.99% with a £200 transfer fee.

I mulled it over the weekend and looked at other providers (lower) fixed rates with (much higher) fees. The independent financial adviser we usually call on for advice was on leave so decided to go for it today. I was half expecting the rates to have increased as I turned them down last week but to my surprise was offered 3.69% fixed rate for 5 years for £200 fee. This will reduce my current payment by £40 a month so pretty happy with that. Well worth a second call...