Remortgaging - Informing existing lender?

CDean

Hi,
I am on a mortgage with Nationwide (where I have been for the past 10 years, on their BMR - not the higher SMR). Interest rate is at ~2.2%, LTV < 50% and it is penalty free, so I can switch anytime.

I am now on the verge of remortgaging from Nationwide to Coventry on their lowest 1.25% variable rate. I have recently submitted a detailed application (following the DIP and quote) and expect it to be a fairly straightforward case.

While waiting for the offer, my question is:

1) Would I need to inform existing lender Nationwide (even though Coventry have their switching service)? If I do, when is the right time to inform them? e.g. after Coventry makes a formal offer?

2) Even if I do not need to officially notify the incumbent lender because of Coventry's switching service, are there benefits to do so? e.g. incumbent vendor offering retention benefits

3) Any pitfalls or good pointers I should be aware of?

Many thanks

Lilla_D

The solicitor used for the remortgage (whether appointed by Coventry or by yourself) will be in touch with Nationwide to get a settlement statement and arrange the mortgage pay-off, so you don't have to contact Nationwide to inform them.

If you tell them anyway, they won't start offering discounts and deals in order to retain your business. Their rates are publicly available, so you could only choose from their existing deals.

If you do find a good Nationwide deal and you'd rather have that than the Coventry deal, then you can cancel the Coventry application (anytime before the remortgage process completes) and go with a new Nationwide deal.