Remortgage with the same lender.

ruudy

Hi, i currently have a 2 year tracker through nationwide, however looking at their current tracker rates it appears that by investing some savings i could shave over 1.5% off my rate by remortgaging. (i still have more than a year to go on the term).

Here is my question though, when i look up mortgage rates it appears that Nationwide actually have the best tracker rate available with no/minimal fees. I was wondering if it is at all possible to change from one tracker product to another with the same lender?

Thanks

Ruudy

betmunch

Its not normally possible.


However, the lender you mention has a switch and fix option on some of their trackers.


Give them a call and see if yours has this option, and if so what their switch and fix product options are for you

ruudy

betmunch wrote: »

Its not normally possible.


However, the lender you mention has a switch and fix option on some of their trackers.


Give them a call and see if yours has this option, and if so what their switch and fix product options are for you

Thanks for the reply. Could you tell me what exactly is a switch and fix? Is it just moving onto a fix rate or something completely different?

The best fixed rates i can find are typically with other lenders. I would love to move to a fixed rate but i'm quite reluctant as i think i'll probably move in the next year or so.

betmunch

Not a good idea to fix if youre looking to move within the fixed period as you dont know you will meet the lenders criteria at the time.

ruudy

betmunch wrote: »

Not a good idea to fix if youre looking to move within the fixed period as you dont know you will meet the lenders criteria at the time.

Yup, so i'm reluctant at fixing in case i do get the overwhelming urge to move. That's why i've been safe on trackers. So am i correct in assuming the switch and fix product is simply moving to a fixed rate product?

If so then it looks like my best bet is is a new lender with new tracker. The next best in only 0.1% more so not a huge issue.

betmunch

Trackers usually have tie-ins too, make sure the one you jump onto doesn't if you are thinking you would move during the tracker period.

kingstreet

You are not remortgaging.

That is a new mortgage with a new lender to repay the old mortgage when you aren't moving house.

You need to ask your lender about its customer retention options, or those for existing borrowers not moving home.

These may be different to the remortgage options advertised for new borrowers to the lender.

ruudy

betmunch wrote: »

Trackers usually have tie-ins too, make sure the one you jump onto doesn't if you are thinking you would move during the tracker period.

Do you mean ERC's or just added on admin/application/exit fees? The one i'm looking at is Santander, which appears to reclaim the free legals (£200) when exiting inside the 2yr term. Its not great, no, but theres no set up fees or anything so its a cost i could handle, so long as theres nothing else that i'm unaware of.

ruudy

kingstreet wrote: »

You are not remortgaging.

That is a new mortgage with a new lender to repay the old mortgage when you aren't moving house.

You need to ask your lender about its customer retention options, or those for existing borrowers not moving home.

These may be different to the remortgage options advertised for new borrowers to the lender.

Fair point. It's just the terminology that many use but yes it's incorrect terminology.

I think its maybe safe to assume i'll probably be better off switching lender?

betmunch

The tie-in is the period that the ERC would apply, Santander trackers do not have ERC's currently.


Quite a lucky lender combination for you it would seem!

ruudy

betmunch wrote: »

The tie-in is the period that the ERC would apply, Santander trackers do not have ERC's currently.


Quite a lucky lender combination for you it would seem!

I actually thought most trackers came with little punishment (ERC's). I thought that was the beauty of them . Generally when i've been searching i just set the filter to find those with no ERC's.