Remortgaging questions

ilnf

Firstly, apologies if these have been asked before.

My fix is up soon and it's looks like I'll be moving mortgage as Santander haven't been particularly competitive. As this is the first time I've had to remortgage I'm quite new to this.

1) I asked Santander what my mortgage value would be at the end of my fix in June and they told me a "rough figure, but there or thereabouts". Now I guess I need to know the exact value to apply to my new lender so how does it work? Can I work out the figure myself or doesn't it really matter and the two companies talk to each other?

2) I have to pay an exit fee to Santander. Do I have to wait until the mortgage has expired as would this technically be ending my mortgage early (and incurring the Early Repayment Charge) if I was to pay now or doesn't it matter? Or can you choose not to continue in advance?

Many thanks

Thrugelmir

When you remortgage a solicitor will handle the discharge of the old mortgage, in the process will obtain a precise settlement figure from your existing lender.

The Early Redemption Charge will be payable if your remortgage before the product term ends. This is not the same as your mortgage term. There will be an exit fee to pay normally of a couple of hundred pounds.

Factor in all the costs of remortgaging. Legal, products fees, exit fees. Don't just compare interest rates.

ilnf

Thrugelmir wrote: »

When you remortgage a solicitor will handle the discharge of the old mortgage, in the process will obtain a precise settlement figure from your existing lender.

The Early Redemption Charge will be payable if your remortgage before the product term ends. This is not the same as your mortgage term. There will be an exit fee to pay normally of a couple of hundred pounds.

Factor in all the costs of remortgaging. Legal, products fees, exit fees. Don't just compare interest rates.

Sorry to sound naive, do I need to instruct the solicitor or is this part of the new lender who does this?

I have been looking at the fee-free options from HSBC whose interest rate is more than 0.7% less than Santander's best offer. Also Santander require £225 exit fee or £125 arrangement for new fix.

davilown

Out of interest (excuse the pun!) but what did Santander offer you? My fix is up in 3 months but they've not given me an offer yet.
Cheers

ilnf

davilown wrote: »

Out of interest (excuse the pun!) but what did Santander offer you? My fix is up in 3 months but they've not given me an offer yet.
Cheers

4.89% for 2yrs or 4.99% for 3. Their SVR is 4.74%. That is at 90% LTV though.

If you call them and you have less than 4 months left they'll quote you.

Thrugelmir

ilnf wrote: »

Sorry to sound naive, do I need to instruct the solicitor or is this part of the new lender who does this?

Lenders will offer you a choice of solicitors from their approved panel to use.

davilown

ilnf wrote: »

4.89% for 2yrs or 4.99% for 3. Their SVR is 4.74%. That is at 90% LTV though.

If you call them and you have less than 4 months left they'll quote you.

Thanks for that - I'm between 80-85% depending on their current valuation