How does it work when you come to the end of the product?

Avalanche123

Hi, I am new in mortgages and want to get more understanding of how it works when your fixed product runs out.

1. Do you fix with your current provider? Then you dont have to have a valuation, right? Can you change the term of the mortgage at that point?

2. You go with another provider and you have to remortgage? That means new valuation and new term if you want.

Do I have that right? Am I missing something?

Thank you

davidmcn

Yep, that's about right. 

kimwp

I think if you want to state that your house is worth more (for example to bump your LTA into the next bracket), then your current provider may want to do a valuation)

roosterpotatoes

In short yes, you can contact your current provider and seek the best product for your loan to value (LTV) and do a product switch/transfer or remortgage, a lot of the time the lender offers a free valuation and free legals (unless a transfer of equity such as adding or removing someone from the title deeds).

A remortgage is more lengthly, its approx 4-5 weeks from app to completion but if rates are better then it is worth it.  Avoiding moving to the standard variable is most preferable moving forward.  

The lender/your mortgage broker should have contacted you to make sure this does not happen without you knowing

Peppermint90

Do we have to go through affordability, income etc. scrutiny again?
What if our financial situation changes by the end of the term? 

Avalanche123

roosterpotatoes said:

In short yes, you can contact your current provider and seek the best product for your loan to value (LTV) and do a product switch/transfer or remortgage, a lot of the time the lender offers a free valuation and free legals (unless a transfer of equity such as adding or removing someone from the title deeds).

A remortgage is more lengthly, its approx 4-5 weeks from app to completion but if rates are better then it is worth it.  Avoiding moving to the standard variable is most preferable moving forward.  

The lender/your mortgage broker should have contacted you to make sure this does not happen without you knowing

Just to make sure I understand the terms. If its the same provider its called product switch. If its another provider its called remortgaging?

Thrugelmir

Avalanche123 said:

roosterpotatoes said:

In short yes, you can contact your current provider and seek the best product for your loan to value (LTV) and do a product switch/transfer or remortgage, a lot of the time the lender offers a free valuation and free legals (unless a transfer of equity such as adding or removing someone from the title deeds).

A remortgage is more lengthly, its approx 4-5 weeks from app to completion but if rates are better then it is worth it.  Avoiding moving to the standard variable is most preferable moving forward.  

The lender/your mortgage broker should have contacted you to make sure this does not happen without you knowing

Just to make sure I understand the terms. If its the same provider its called product switch. If its another provider its called remortgaging?

That's correct. 

K_S

Peppermint90 said:

Do we have to go through affordability, income etc. scrutiny again?
What if our financial situation changes by the end of the term? 

@peppermint90 No affordability, income or credit checks for product switches (staying with the same lender) as long as you're not looking to change borrowing or term.

getmore4less

With some lenders you should use a broker for your product switch as they have better rates.

annetheman

getmore4less said:

With some lenders you should use a broker for your product switch as they have better rates.

<Sorry in advance for thread hijack OP> Great questions, great clear advice. Please clarify, if possible:
most lenders have a site for intermediaries - where I have seen these, there is a link to "our products" or similar, with a list of different products available at the time - is there another bunch of products not listed in those areas that only brokers have exclusive access to? 

My understanding is that those products are available for application through brokers only - so if a customer tried to apply using the usual application form and used the product code found on the "for intermediaries" site, it would be rejected, is that correct?

K_S

annetheman said:

getmore4less said:

With some lenders you should use a broker for your product switch as they have better rates.

<Sorry in advance for thread hijack OP> Great questions, great clear advice. Please clarify, if possible:
most lenders have a site for intermediaries - where I have seen these, there is a link to "our products" or similar, with a list of different products available at the time - is there another bunch of products not listed in those areas that only brokers have exclusive access to? 
My understanding is that those products are available for application through brokers only - so if a customer tried to apply using the usual application form and used the product code found on the "for intermediaries" site, it would be rejected, is that correct?

@annetheman Generally speaking, products will fall into one of the following categories -

1. available only to clients going direct
2. available to both clients going direct and through brokers
3. available only through brokers
4. available only through certain brokers (these are called 'exclusives' and limited to certain mortgage networks/clubs that brokers use)
5. available only through packagers (usually adverse/specialist products) such as Brightstar, Crystal, etc
   

To answer your question (and it won't be the same for every single lender), if there are products that are not listed on the intermediary site, it'll most likely be in categories 4 and 5 above.