Any point remortgaging whilst waiting to move?

MrMrMr

Sitting with my current mortgage, on Halifax standard 3.99%. Our house is up for sale, has been a while, and when we move we'll have to remortgage for the new house, increasing the mortgage.

However, while I'm waiting to move, should I remortgage now and get on a better rate? Would probably need one with no product fee and early redemption fees etc?

Or should I remortgage now "properly" ensuring when we do move that I can port this current mortgage with additional borrowing to the new house?

Thanks

dimbo61

I think you are better off waiting until you have sold.
Build up savings or overpay if you can for now.

JimmyTheWig

Technically, remortgaging means changing mortgage company.
I don't think this would be worth it for you as you wouldn't be able to do this without getting tied into a deal. Which would mean you would have to port the mortgage when you move.
The trouble with porting is that you are tied into your mortgage company. It is a whole new application process. If they decide that they don't want to lend you what you want there is not much you can do other than pay the early repayment charges and go elsewhere. Also you would be left paying arrangement fees now and again for the new part of the new mortgage when you move.

What it is probably worth doing is phoning the Halifax (i.e. your current mortgage provider) and asking them if they have a better rate that you can move on to. They might do you a deal with little or no arrangement fee and little or no ERC that make it worthwhile switching. I doubt they'll have anything that makes it worthwhile, but it is worth asking.

MrMrMr

dimbo61 wrote: »

I think you are better off waiting until you have sold.
Build up savings or overpay if you can for now.

Ah ok, not sure why I've waited so long, but I've just setup an overpayment of around 30% which they said I could with no penalties and can stop/start when I want.

It's just I'm on 3.99% variable and so wondered if should change whilst we wait?

JimmyTheWig wrote: »

Technically, remortgaging means changing mortgage company.
I don't think this would be worth it for you as you wouldn't be able to do this without getting tied into a deal. Which would mean you would have to port the mortgage when you move.
The trouble with porting is that you are tied into your mortgage company. It is a whole new application process. If they decide that they don't want to lend you what you want there is not much you can do other than pay the early repayment charges and go elsewhere. Also you would be left paying arrangement fees now and again for the new part of the new mortgage when you move.

What it is probably worth doing is phoning the Halifax (i.e. your current mortgage provider) and asking them if they have a better rate that you can move on to. They might do you a deal with little or no arrangement fee and little or no ERC that make it worthwhile switching. I doubt they'll have anything that makes it worthwhile, but it is worth asking.

Thanks understand exactly what you mean. I've been a customer for years, not that I think that matters nowadays, that's what I would be after, no ERC and no upfront fees, otherwise, he stated that I could overpay what I wanted so may as well just do that?

amnblog

Do not change lender, do not change rate - WAIT

MrMrMr

amnblog wrote: »

Do not change lender, do not change rate - WAIT

Ah ok, can you expand on reasons please? It's a standard rate so thought would be better on lower rate?

Thanks

dimbo61

If you borrow the money to remortgage you may find that you are unable to borrow the EXTRA you need when you want to move or if you can get the extra then it maybe at a poor rate!
Build up savings to pay for fees, ie Solicitor,searches, mortgage fees and then OVERPAY

MrMrMr

Yeh I'm saving and have budgeted for the move, with the profit of the house (hopefully!), I've used this also for solicitors estate agent fees and moving fees.

As I've said I've setup an overpayment from today, really wish I had done before, and see how it goes.

With the way saving rates are, even today I'm thinking I should increase the overpayments even more rather than save?

JimmyTheWig

MrMrMr wrote: »

Thanks understand exactly what you mean. I've been a customer for years, not that I think that matters nowadays, that's what I would be after, no ERC and no upfront fees, otherwise, he stated that I could overpay what I wanted so may as well just do that?

If you can get a lower rate with the same lender with no ERCs and no fees then it is worth switching.
That is a different question to whether it is worth overpaying.

MrMrMr

JimmyTheWig wrote: »

If you can get a lower rate with the same lender with no ERCs and no fees then it is worth switching.
That is a different question to whether it is worth overpaying.

Ok bit confusion now then as some are saying don't change anything and just overpay...

I would have thought if I could get no ERC and pay no fees and it was less than 3.99% then it would be worth it?

JimmyTheWig

MrMrMr wrote: »

I would have thought if I could get no ERC and pay no fees and it was less than 3.99% then it would be worth it?

I would agree with you.

Ok bit confusion now then as some are saying don't change anything and just overpay...

I think this is probably because they _know_ that you won't get a deal with no fees and no ERCs.
I _doubt_ that you'll get a deal with no fees and no ERCs, so say it's worth a phonecall.