Remortgage

natalieho

When you re-mortgage with the same Bank with no extra borrowing (just a case of 5 year deal coming to end and swapping for a new deal), is it a straight swap on to the new rate or do you have to provide extra information etc?

kingstreet

That's a customer retention product, not a remortgage.

People are directed to the wrong products if they think they are remortgaging. That's a new mortgage with a new lender to replace the old mortgage on your current home.

Some lenders are happy to switch borrowers to retention products, while others have (IMHO) chosen to misinterpret the new rules and demand affordability checks and proof of income.

dazanteney4

Kingstreet,

What about if your trying to "consume" the equity loan on help to buy but want to stay with the same lender, would you have to do the affordability checks?

Thanks

kingstreet

Yes, because you want to increase what you're borrowing. That's a further advance, or additional borrowing to some lenders and it will be subject to the usual new application checks.

If you remortgage to a new lender for the full amount, you'll go through the same thing.

natalieho

kingstreet wrote: »

That's a customer retention product, not a remortgage.

People are directed to the wrong products if they think they are remortgaging. That's a new mortgage with a new lender to replace the old mortgage on your current home.

Some lenders are happy to switch borrowers to retention products, while others have (IMHO) chosen to misinterpret the new rules and demand affordability checks and proof of income.

Thank you, I'm doing it on line via my mortgage account so will wait and see what it says (I can do it from tomorrow I hope as my date falls on Sunday) I presume I still need to pay the 're-mortgage' fee they quote with 're-mortgaging' customer retention.

kingstreet

I'm sorry, I can't answer about the fee.

Different lenders call things different names. The usual remortgage fees are valuation and legal costs and there will be none of those for you to pay as your mortgage deed remains unaltered.

However, there may be an admin or arrangement fee attached to the product you have chosen.

BTW plenty of mortgage lender staff mis-use the word remortgage as well.

densol_2

natalieho wrote: »

When you re-mortgage with the same Bank with no extra borrowing (just a case of 5 year deal coming to end and swapping for a new deal), is it a straight swap on to the new rate or do you have to provide extra information etc?

My new deal at end of fixed rate with Nationwide was online - no questions about finance etc - offer issued straightaway and starts 1st Aug