Switching mortgage product 6 months in

dotdash79

I'm currently on a 3 year discount rate with no tie in, I've noticed that my provider has an product with no fees for existing borrowers at a lower rate (not by much). They also have a product for new customers / remorgaging at an even lower rate, this comes with some fees however this can be completely written off by the cashback they offer.

I've only had the mortgage for 6 months, do you think a lender would let me move to a different product? and do you think I would be re-underwritten for the lowest rate one?

The difference would be around £15 or £30 per month depending on what product I went on which I would just leave on the account as a overpayment.

ACG

We would need to know the lender to have any hope of answering this question but for questions like this your best just calling the lender up direct.

dotdash79

It's Leek United

kingstreet

Lender discretion on allowing it, but ensure it's available to "existing borrowers not moving home, looking for a new deal" to ensure you qualify.

If there's a cashback involved, I suspect it will be for existing borrowers moving home, but you need to check with the lender.

_Andy_

I imagine an early repayment charge would apply for your current product?

Re cashback, website seems to indicate you would get it

" If you are an existing borrower this will be paid by cheque direct to yourself."

But I imagine this would outweighed by the ERCS of your current one

Thrugelmir

Current product that appears similar to yours has an ERC

An early repayment charge of 3% applies within the first 3 years.

Lenders are wise to what you are attempting.

dotdash79

That product is new today, I was looking at another one last week with no ERC, my product doesn't have an ERC on it.

Not sure about locking myself in to a 3 year discount rate which could change at any time. need to do the maths on this

EmmG_2

Speak to your lender even if the product may not have any early repayment charges - they can help you decide whether or not it's worth switching. An independent financial adviser may be of some use too.

dotdash79

I'm going to give them a call at the end of the week and work it out

EmmG_2

Good luck!

dotdash79

Just an update. Spoke to my lender today who confirmed I wasn't tied in. After doing some research this week I decided to to switch to the new discount product.

Strictly speaking I'm still on a 85% LTV, nothing I found could beat the rate and with no fees I'm happy. I know I'm locked in for 3 years and the SVR might go up but it could go up by 0.75% and I would be where I am now.

This means I can start over paying now