Re-Mortgage what involved

swanny78

Hi all,


I had a new first time mortgage nearly 2 years ago and its up for renewal soon. What's involved in getting a re-mortgage? Is it different if I move supplier, if I stay with the same company etc??


Still same in depth checks etc as first mortgage (don't want to go thru that again!)


Any advice would be helpful thank you.

Malmo

Be aware of the distinction between (1) a "Customer retention" product with your existing lender, which assumes no change to your borrowing needs and therefore no credit and affordability checking and underwriting and (2) an actual remortgage, which is essentially the same as a new mortgage and requires credit checking, affordability assessment and underwriting.

There is an full MSE remortgage guide on this board, which you should download and read.

kingstreet

swanny78 wrote: »

Still same in depth checks etc as first mortgage (don't want to go thru that again!)

In which case, as Malmo said, you are limited to customer retention products from your existing lender.

A remortgage is a new mortgage with a new lender so it's subject to the usual checks and enquiries.

swanny78

Thank you for your replies. I'll seen what my incumbent offer me and go from there.

scoops82

If you stay with the same provider but are hoping for a better LTV is it still a retention product or is it then a remortgage?


When we bought it was with a 10% deposit and were are now hoping it would be 15-25% as we did a lot of work so looking better deals available.

calydon

I've just switched my HSBC mortgage to a new product (still with HSBC). They reassessed my LTV automatically so I went from 90% to 75%, without doing a full application - so that would count as a 'retention product' based on what's been talked about above.

scoops82

They didn't visit the property to value it then?

kingstreet

scoops82 wrote: »

If you stay with the same provider but are hoping for a better LTV is it still a retention product or is it then a remortgage?


When we bought it was with a 10% deposit and were are now hoping it would be 15-25% as we did a lot of work so looking better deals available.

For it to be a remortgage there has to be a change in the mortgage deed securing the loan with the property.

As that will not happen with anything you do with your existing lender, that is a retention product.

calydon

scoops82 wrote: »

They didn't visit the property to value it then?

Nope, their online switching tool calculates what it thinks the current LTV is (based on some background assumptions about house price changes I suppose); I worked out what HSBC assumed the price was based on the LTV - then when I phoned up they asked me what I thought the house was worth and I gave them the figure their machine had calculated, and they were happy with that. So no physical re-valuation.