My re-mortgage experience & improvement advice

starkiwi26

Dear all fellow members here,

I just successfully re-mortgage from Halifax mortgage to HSBC mortgage today. Yes, the completion date is today. I would like to share my experience and mistake I made, so that this can serve as learning lesson to fellow MSE members so that not to make the same mistake, and also fellow MSE expert could give advice how to avoid making the same mistake againn.

I bought my current house £130k 2 years ago with Halifax mortgage. As the mortgage interest rate is very low now, but Halifax offer me 2.xx% which is very expensive compared to the offer in the market. This forced me to remortgage to other banks, and after all the survey, HSBC offer the most competitive rate, 1.64% for 2 years fixed.

I started the re-mortgage process end of May, it took me nearly 2 months to complete.
Mistake 1: Start the process too late..
Lesson 1: Start early, it take times to process the application and legal work. you can negotiate the completion date with the solicitor to avoid early repayment charges.

During mortgage shopping, I notice a mortgage provider (building society) offer an even more attractive interest rate at 1.59%. but I called and spoke to the customer service agent, it is confirmed that there is account closing fees of £169, telegraphic transfer £25. These charges are hidden until you read the terms and conditions (provided you will read the small print in terms and conditions).
Lesson 2: The lower interest rate didnt mean it is cheapest. Always call the customer service and ask if there is account closing charges and etc charges. This made huge different, making the mortgage even more expensive compared to 2nd lowest interest rate mortgage (with no hidden charges).

When the mortgage adviser asked me what is my house value, I told I bought it £130k 2 years ago, but following house price index, I would assume my house now worth £140k. The adviser accepted but it is subject to house valuation & assessment. But when I applied for the mortgage, the HSBC system automatically approved this £140k house price because the HSBC system showed my house was valued at £144k and therefore HSBC do not need to do valuation & assessment on my house. :mad: :eek: I should have demanded for £144k, so that I can have lower LTV, and therefore entitle for lower interest rate.
Mistake 3: Should have asked HSBC mortgage adviser to check their system, what is the house current price in their system.
Lesson 3: Always increase your house value so that you can entitle for lower LTV, and there entitle for lower interest rate. This particularly true especially the house price had been increasing a lot for past few years. Recommended to check house price index as reference to your local area.

The lesson 3 is especially important, which cost me to pay slightly higher interest rate. Hope this could be beneficial to all fellow MSE members who plan to apply for mortgage & re-mortgage.

Regards,
Starkiwi

Okydoky25

Sorry to bump an old post but can I ask OP you state it took 2 months to complete your re-mortgage. How long did it actually take from the time you received your full offer and legals had been instructed?