Remortgage <1 year before buying a new home

charltonfan1

We are currently on SVR 4.49% and in a position to remortgage right now, but are likely to be buying a more expensive home within 12 months

Existing mortgage provider has given me some remortgage rates fixed and variable. I have no Early repayment charges right now

I have done some calcs of £ paid out if we sold in 12 months to consider the cost effectiveness of weighing up remortgages with fee's and Early repayment charges where they apply.

Is it as simple as this? Is there anything else i should consider?

Should i also consider remortgaging with another institution?

Incumbent bank have said that a remortgage would not count as a credit search and not need a valuation

amnblog

You need to be confident that your current lender will:


Offer you a facility to port the new product


Successfully underwrite you for the new mortgage on the new property.


Failure on either of these points means that any new product with an early redemption fee will have you paying it.

charltonfan1

amnblog wrote: »

You need to be confident that your current lender will:


Offer you a facility to port the new product


Successfully underwrite you for the new mortgage on the new property.


Failure on either of these points means that any new product with an early redemption fee will have you paying it.

Thank you. Santander did confirm it was portable.

Their tracker options had 0% ERC giving more flexibility and only £999 product fee with no other fees so more competitive that what the MSE mortgage search is suggesting is available in the market.

Santander's own affordability calculator (Which i found by reading this site) suggests my circumstances will allow for a much bigger mortgage in future (i know this calc is in no way a guarantee but useful none the less).

kingstreet

charltonfan1 wrote: »

We are currently on SVR 4.49% and in a position to remortgage right now, but are likely to be buying a more expensive home within 12 months

Existing mortgage provider has given me some remortgage rates fixed and variable. I have no Early repayment charges right now

I have done some calcs of £ paid out if we sold in 12 months to consider the cost effectiveness of weighing up remortgages with fee's and Early repayment charges where they apply.

Is it as simple as this? Is there anything else i should consider?

Should i also consider remortgaging with another institution?

Incumbent bank have said that a remortgage would not count as a credit search and not need a valuation

A customer retention product with your current lender isn't a remortgage, so yes, there would be no valuation nor credit check.

If your lender has such products with no early repayment penalties, choose one of them. Otherwise, as amn says, you could find yourself in the doodoo if your lender won't lend what you need when you move.

Alternatively, as you said, think about a remortgage to a new lender to perhaps a penalty-free tracker product with no fees and free legals, so all it costs you to move is your current lender's discharge fee. When you do move house, you can look at the whole market again.