remortgage question

crighton

hello,

Am thinking of remortaging soon my question is Do you have to go through all the affordability checks still if you want to continue with your current provider just on a new mortgage with them:huh:?

Hope someone can help seems a simple question but have not been able to find an answer yet

kingstreet

Staying with your existing lender and taking a customer retention product isn't a remortgage. However, some lenders are making this an "advised" process and insisting on affordability checks where you go via a branch or over the phone.

If you can do it online, you are likely to avoid further checks.

A remortgage, which is a change of lender, repaying the existing mortgage with a new one, will usually involve some form of income and affordability verification.

theirmum2

Hi there,

Just thought I'd pop an answer to you - I'm just off the phone with my current provider as my deal is coming to an end. i went through this process with them 2 years ago and I think it took 15 minutes and not one question asked. Whole different process now and I've been on the phone for an hour and feel like I have laid my life bare with all the questions, so do be prepared for the third degree when you make contact. I had no way of renewing online so a call was the only way. I had a sneaky feeling this would be the case so fortunately had all the info they requested to hand. Still awaiting a call back to tell me what they can offer so it's not all done and dusted yet.

Good luck!

Bonzer_Brad

I'm a newbie, so go gentle. I don't know whether to put this on this thread, but I don't know how to create a new one. It is in relation to a remortgage. I have 3 and a half years until my mortgage is paid off. The balance is around £35k. Interest rates are likely to increase and so I enquired with my lender about switching from a variable rate to a fixed. Currently 4% variable. 2 year fixed would be 2.99%. No fees are payable and yet the repayments I was quoted would increase by £21 a month on a reduced interest rate! The adviser could not explain why and had to seek advice. He said it had something to do with the term, but couldn't explain why. Any advice guys?

GoneWithTheWindFabulous

Bonzer_Brad wrote: »

I'm a newbie, so go gentle. I don't know whether to put this on this thread, but I don't know how to create a new one. It is in relation to a remortgage. I have 3 and a half years until my mortgage is paid off. The balance is around £35k. Interest rates are likely to increase and so I enquired with my lender about switching from a variable rate to a fixed. Currently 4% variable. 2 year fixed would be 2.99%. No fees are payable and yet the repayments I was quoted would increase by £21 a month on a reduced interest rate! The adviser could not explain why and had to seek advice. He said it had something to do with the term, but couldn't explain why. Any advice guys?

Did you shorten the mortgage term?

Thrugelmir

Bonzer_Brad wrote: »

I'm a newbie, so go gentle. I don't know whether to put this on this thread, but I don't know how to create a new one. It is in relation to a remortgage. I have 3 and a half years until my mortgage is paid off. The balance is around £35k. Interest rates are likely to increase and so I enquired with my lender about switching from a variable rate to a fixed. Currently 4% variable. 2 year fixed would be 2.99%. No fees are payable and yet the repayments I was quoted would increase by £21 a month on a reduced interest rate! The adviser could not explain why and had to seek advice. He said it had something to do with the term, but couldn't explain why. Any advice guys?

Go to the main Mortgages and Endowments board - link below

http://forums.moneysavingexpert.com/forumdisplay.php?f=15

Towards the top on the left hand you'll see a blue box titled NEW THREAD. Click it.

Thrugelmir

theirmum2 wrote: »

Hi there,

Just thought I'd pop an answer to you - I'm just off the phone with my current provider as my deal is coming to an end. i went through this process with them 2 years ago and I think it took 15 minutes and not one question asked. Whole different process now and I've been on the phone for an hour and feel like I have laid my life bare with all the questions, so do be prepared for the third degree when you make contact. I had no way of renewing online so a call was the only way. I had a sneaky feeling this would be the case so fortunately had all the info they requested to hand. Still awaiting a call back to tell me what they can offer so it's not all done and dusted yet.

Good luck!

Much depends on the lender and their historical attitude towards underwriting. Now it's an opportunity to reappraise risk posed.