remortgage advice

callmechar

My three year fix ends in March. I am glad as the rate we are paying is quite a lot compared to some deals currently available. We are paying 4.89%.

Houses prices where I live have risen significantly since I purchased my house. I paid 205k with a 10% deposit.

Houses here are selling for approx 300k now.

My question is what do we need to do when the deal ends? Do we remortgage and go through mmr or just switch rates? If we switch rates do we just move onto another deal in the same ltv bracket? Mmr worries us!

We are with the Post Office. We ideally want to stay with them.

Thanks

Thrugelmir

Give the Post Office a call initially. See what's on offer to you.

Remortgaging to a new lender requires a full application in addition costs such as legal, valuation and product fees can mount up. Which potentially reduces the attraction of remortgaging.

If there's been a negative change to your circumstances then this could impact the options available on remortgaging.

callmechar

Thanks.

The BOI website for existing customers says you can apply online to remortgage if...
You'd like to keep your mortgage amount, term and repayment method the same
You only need one quote
Your mortgage started after 31st October 2004 and you only have one account (no sub accounts)
You're outside any Early Repayment Charge (ERC) period, or have less than 3 months remaining of your ERC period
You have a residential mortgage that is not let with consent
You're not in arrears on your mortgage
Your remaining mortgage term is more than 30 months

However we don't want the same amount. We want less now?

callmechar

Also the ltv is less now so I'm confused

https://bankofirelandmortgages.co.uk/residential/rates1/switch-your-post-office-deal/post-office-product-range

Yorkie1

No, that's absolutely fine. They mean that you're not trying to increase the amount of the loan.

callmechar

Thanks. The deals for existing customers aren't that great. I think our ltv is less than 75% and the best they offer is 3.19%

Would they offer us a deal that is listed on their website and not have to make a whole new application? For new customers they offer a 5yr fix for 2.79%

Yorkie1

Very much doubt you'd be eligible for products aimed at new customers. You need to look at customer retention products. If all you're doing is changing onto one of those, you can usually do that online without going through a full application.

Tyler_Du

I've just remortgaged, got 2.79% fixed for 5 years with barclays, has a £999 arrangement fee though.

callmechar

I also do not really want the same term (was a 30 yr mortgage) and so 27 years left. I was hoping to cut this down to less years as the interest rate is less. However, would this mean completely re mortgaging so a full application?

Yorkie1

Yes, it would.

If you don't want to go through a full application, whether with another lender or by changing any existing elements (outstanding term or £), then just overpay. This will have the same effect in the long term as reducing the term, assuming you are disciplined about it, but it gives you the flexibility of lower formal repayments if you need it.

callmechar

Thanks.

Ok so just to be clear, I can ask for the lesser mortgage (what I've got outstanding left on the mortgage) on the same terms eg 27 years. I am still worried that it says getting the same amount of money. Will the interest repayments be worked out on what is left?

As the repayments will be lower then I do hope I can make overpayments.