Credit Check when remortgaging with the same bank?

missing_string

I bought my flat a year and a bit ago and towards the end of the year, I'll need to be looking at remortgaging, when my 2 year fixed ends.

Due to circumstances changing, I won't be able to switch to another provider and have to stick with the current one. However, my plan is as follows:

I have ~£10k in savings and ~7k on 0% credit cards. My intention is to carry on saving until the my fixed term ends, dump a load of cash on the mortgage and drop at least 1 LTV band. However, the only potential issue I have with this is if they do a credit check, I'll be forced to put a large chunk of the savings I have onto the credit card debt. I know that switching to another provider - they would do a credit check, but staying with the same provider, would they do one?

betmunch

If you are reducing the loan while changing product I would expect a new assessment.
If you reduce the loan first, then do an execution only product transfer you should be fine.

minimike2

I disagree. Don't see any reason why a lender would complete any assessment. All that's happening is an overpayment followed by a rate switch. You would have to wait for the funds to clear off the balance before the switch to allow the switch at the new tier. No need for any reassessment or credit checks at all and I don't see what other way a lender would approach it?

Unless it is a lender that has a policy of credit checking for a rate switch. I am not aware of anyone who does this?

betmunch

minimike2 wrote: »

I disagree. Don't see any reason why a lender would complete any assessment. All that's happening is an overpayment followed by a rate switch. You would have to wait for the funds to clear off the balance before the switch to allow the switch at the new tier. No need for any reassessment or credit checks at all and I don't see what other way a lender would approach it?

Unless it is a lender that has a policy of credit checking for a rate switch. I am not aware of anyone who does this?

Hi Mike,
That's the second option I described isnt it?

If done together it's a material change so will need assessing

minimike2

What I mean is I don't see HOW it can be done together? I have never heard of that being done / how it can actually work? Therefore I can't forsee any scenario in which any kind of reassessment would be needed.

betmunch

minimike2 wrote: »

What I mean is I don't see HOW it can be done together? I have never heard of that being done / how it can actually work? Therefore I can't forsee any scenario in which any kind of reassessment would be needed.

Ahhh, I gotcha.

I thought if you rung up the bank and said id like to reduce my balance and pick a new product they would do it all at once and force the client down the advised route.

If client calls to make the overpayment, waits until it's cleared, then goes online and does the product switch there's no opportunity for the lender to force them into an advised process.

I think we're also arguing the same point with different words!

minimike2

I think so