Re-mortgage with the same lender (First Direct)

alexnznz

We have an offset mortgage with First Direct and thinking about taking their offer of a fixed term (which would save us money). Can someone share from their experience the process FD operate:

1. Is a new house valuation required? We do not plan to increase the current mortgage
2. What documentation will they ask for? I have no income in the UK at present as I work in Europe. Also, since we've taken the mortgage my wife has stopped working.

Thank you in advance.

Thrugelmir

If you received an offer from FD. What's the next step in the process. Have they asked you to ring them or is a question of returning a completed form.

alexnznz

Thrugelmir wrote: »

If you received an offer from FD. What's the next step in the process. Have they asked you to ring them or is a question of returning a completed form.

No, I have not received an offer directly. I am thinking about applying for one currently on HotUKdeals.

kingstreet

If you are an existing borrower, you are not remortgaging, you are asking your lender for a customer retention product.

This may be the same as their remortgage offerings (new borrower to this lender) or they can be significantly different.

You need to ask your lender what products it has for you and what you have to do to achieve one.

Perelandra

Usefully, I'm in a very similar situation to yourself at the moment, so will update you when I know the full details.

I'm also on a FD Offset mortgage at the moment, and am looking to additional lending through a Fixed mortgage with them (unlike you, I intend to retain the Offset functionality on the existing mortgage).

So far, I have called them to take them through my requirement. They've done a high level affordability check, and given me an idea of the amount I could borrow (based on my estimate of the value of the property).

Tonight, one of their mortgage people will be contacting me at a pre-arranged time, to talk about actual mortgage products. Nothing has been mentioned regarding the house revaluation so far (they have, so far, accepted my estimate).

They have asked for:
Last three months' payslips
Last P60
Copies of (current account) bank statements with other companies

getmore4less

Look at the rates carefully especially follow on if the offset is a good rate lifetime tracker.

getmore4less

Perelandra wrote: »

I'm also on a FD Offset mortgage at the moment, and am looking to additional lending through a Fixed mortgage with them (unlike you, I intend to retain the Offset functionality on the existing mortgage).

do FD allow mix and match with offsets?

Perelandra

Sort of...

You can have two mortgages, but you can't mix 'n match Interest Only and Repayment.

I have an existing offset mortgage, which is at a decent rate (lower than currently available), which I do not want to lose.

I can take the additional borrowing on a fixed or tracker basis, but since the Offset is interest Only, the additional borrowing needs to be IO as well. This means, in practice, I am asking for (and have been given rates for) an Interest Only fixed term mortgage for the additional borrowing. That surprised me, as I cannot see these on their website.

In terms of valuation (in response to OP)

They have a basic tool that they can use to value your home. If that comes back "okay", then nothing else is needed. If that values the home too low, then they will need to do a standard valuation of your home- but as an existing customer, I would not have to pay for that (even if the mortgage does not go ahead).