Accord mortgage transfer rate

jonnyb1978

Had an accord mortgage for the last 2 years. After the initial pain in the bum application everything has run smoothly. Can not fault them as had no dealing with them. Mortgage paid on time every month.

Initial period is coming to end and apparently I can transfer to new rate without the need to remortgage. So no legal, administration, valuation fees etc.

I can basically keep my payment and rate the same but now over a 5 year fix at 2.54%. I know I can get cheaper but is it worth the hassle. Cheapest I've found is a saving of £26 monthly. So with a saving of around £1400 over 5 years minus administration charges etc, I'm inclined to stay with accord but not heard of a transfer before. I could actually remortgage with accord for a lower rate but with legal fees etc charged so......

Anybody experience this before? Any catch to it?

What's the difference between this and remortgage with them. I'm assuming to to keep customers due to an easy transfer policy with the downside of a slightly higher rate.

Mortgage is 169k over 23 years, ltv 75/80%

Thrugelmir

A switch of product with an existing lender is not a remortgage. The term term mortgage relates to the legal charge placed on the property to secure the debt. If you don't switch lender then the mortgage charge remains unchanged. Otherwise all you have is a loan like any other.

So I'm unsure why you will incur remortgage charges to remain with Accord.

To switch lenders you'll incur a mortgage exit fee, valuation fees and legal fees. In addition a product fee if applicable. So a £1k can easily be spent on the process. Greatly reducing any potential cost saving.

jonnyb1978

Thanks. I think i misunderstood the process. I was going off the comparison tables so as im already with accord its not a remortgage but a product change, correct?

If i went to Nationwide for example that would be a remortage?

Think im better of staying with accord taking into account going through the rigmorole of legal, valuation fees etc.

Thrugelmir

Yes

Yes.

Possibly. Crunch the numbers after identifying the costs fully.

Not all products are available to existing customers. You'll need to check directly with Accord as to what's available to you. Below is a link.

http://www.accordmortgages.com/existing-customers/transferring-products/index.html