Question about remortgage

Simba-ali34

Hello

I have a fixed rate mortgage with tsb which ends in April. I'm looking to transfer to a different deal with tsb and was wondering the best way to do this?

Do I wait for my current deal to end as I would be penalised for early repayment and then approach tsb as to get off their basic rate?

Regards

LRmortgage

They usually write to you a couple of months before the current deal expires with your options.

If you want to stay with them, you’ll probably be able to pick a new deal online without having to answer many questions.

Why stay with TSB though?

Simba-ali34

I just thought staying with tsb would make it easier in respect to paperwork and fees etc.

Obviously if the rate is bad I'll look elsewhere. So is it likely they would not charge me a early repayment fee if they write to me with options?

kingstreet

That's a customer retention product, or product switch/transfer, not a remortgage.

Don't look at remortgage products as they apply only to borrowers new to a lender.

Simba-ali34

Can you explain the major difference between remortgage and transfer of deal in terms of rate deals and how easy each one is?

Kind regards

kingstreet

When you move from one lender to another, there is a change of mortgage deed, or a 'remortgage'. This means the security, the document tying the security property to the loan has to change from one lender to another.

Lenders often offer free legals, valuation etc to attract remortgagors. However, you will be asked to supply the kind of documents needed for a purchase, bank statements, payslips etc.

A customer retention product is offered to an existing borrower when their current deal ends. It usually requires no further status or affordability checks and the products offered may not be as good as those offered to new borrowers.

Simba-ali34

Thank you for that info, really helps.

So does that mean I am Likely to get a higher % when I renew Compared to my Current rate?

kingstreet

Simba-ali34 wrote: »

So does that mean I am Likely to get a higher % when I renew Compared to my Current rate?

No idea.

But I'd say there is a good chance your customer retention options with most lenders are at higher rates than those offered to new borrowers to your lender, or to you as a new borrower to a different lender.