Remortgaging with a different lender

Beckyy

The fix on our mortgage is due to finish at the end of May.

We are currently leaning towards a 2 year tracker. Our current provider can offer a 2 year tracker at 1.49% (BBBR + 0.99%) with a £999 application fee.

A different lender can offer a 2 year tracker at 1.44% (BBBR +0.94%) with £1019 set up fees but £250 cashback.

If we were to switch lenders could we get the AIP now, apply and ask our conveyancer to complete the next working day after our fix has ended, or would we have to wait for it to end first then start the application?

My OH is due to start a new job in May so I'm keen to do everything sooner rather than later if possible incase we have to wait for payslips etc. from his new job. There are no issues with affordability and we have a decent LTV but concerned we could be delayed on SVR due to OH's job change.

Thrugelmir

You'll need to declare the new employment to any lender you remortgage with.

Does the product you are proposing switching to cover legal and valuation fees? Also don't forget there'll be a mortgage redemption\exit fee charged by current lender. As these need to form part of your calculation when deciding to switch or not.

What are the follow on SVR's after the fixed terms gave ended?

Beckyy

Both SVR's are the same, 3.99%. Neither include legal fees but I don't mind paying and using our own as I trust them to do a good job for a reasonable price.

No problem declaring the new employment, but I'm just keen to know if we have to wait until our fix is up before we can actually apply for a new product, or whether we can apply now with the intention of completing the day after our fix ends.

Thrugelmir

Beckyy wrote: »

Both SVR's are the same, 3.99%. Neither include legal fees but I don't mind paying and using our own as I trust them to do a good job for a reasonable price.

There's no cost in this regard if you remain with your existing lender. Which would mean that your existing lender would be the better option.

Sorry if I wasn't clear in my earlier post.

Beckyy

That did cross my mind, but the £250 cashback from the other lender would likely cover the conveyancing and give us 0.04% lower interest rate so possibly not? (Although not a huge amount in it maybe)

amnblog

You can apply now and complete when your current product ends. That is standard practice.

dimbo61

Why a 2 year tracker? with a £999 fee as well!
You have not give the loan amount or any other details
If you stay with your current lender you are just changing deals and not remortgaging
You will pay exit fees to leave your current lender and legals ( unless included in the remortgage) if you want to move lender

Beckyy

Loan £87,500, Property value £125,000.

We're likely going to be moving within the next 2 years but unsure when so we need a product with no ERC, and a tracker seems to be the way to go. We're not definitely going with the product(s) mentioned in the OP though.

Thrugelmir

What fee free options has your existing lender given you?