Re-mortgaging with current lender

jimbo83

Hi All

If you re-mortgage with your current lender, do you have go through the full application process again (eg complete the application, providing proof of income, have the credit check carried out)?

Or is it more straightforward than it would be going to a new lender?

Cheers

kingstreet

No. It's not a remortgage, you are simply requesting a customer retention product.

You only have to go through the rigmarole if you change lenders or you want to borrow more from your existing lender.

jimbo83

Thanks

It would just be a simple re-mortgage with no increased borrowing, so was hoping the process would be easier and they would assess my eligibility for a new product on account history, LTV etc.

kingstreet

I try to discourage use of the word remortgage to describe the process of arranging a new product from your existing lender.

Remortgage products are not what is offered in these circumstances, so it could mislead others who look at their lender's remortgage products, which would not apply to them. Only a change of mortgage deed, which happens when moving from one lender to another determines what is a remortgage...

Ask your lender about its customer retention products, or in Halifax parlance, a "product transfer."

Such products require no further underwriting, although from next month, affordability calculations will be applied.

jimbo83

kingstreet wrote: »

I try to discourage use of the word remortgage to describe the process of arranging a new product from your existing lender.

Remortgage products are not what is offered in these circumstances, so it could mislead others who look at their lender's remortgage products, which would not apply to them. Only a change of mortgage deed, which happens when moving from one lender to another determines what is a remortgage...

Ask your lender about its customer retention products, or in Halifax parlance, a "product transfer."

Such products require no further underwriting, although from next month, affordability calculations will be applied.

Thanks

Noted.

Yorkie1

kingstreet wrote: »

Such products require no further underwriting, although from next month, affordability calculations will be applied.

I hadn't realised that MMR would affect customer retention products.

What's the difference between affordability calculations and full underwriting? If a customer's circumstances had changed (for the worse) significantly, but they are still servicing the mortgage, what is likely to be different post-MMR for them?

[Just curious - doesn't affect me personally.]