Nationwide - direct or broker

Mrs_F_2017

Any advice welcomed!

We are still on fixed deal mortgage rates  (two parts both finishing in 2022) but with interest rates so low at the moment it would potentially be beneficial remortgaging now and paying the ERC's based on calculations we have run. 

We are with Nationwide and on comparison sites they come out most competititve rate wise for the remortgage.  My question is how is best to apply - we've always used a broker before and been pleased with the service and rates. 

Or are we over-complicating it and I should just go direct to Nationwide as an existing customer?  

[Deleted User]

Go to a broker who will happily take you to Nationwide as an existing customer and do it in about half as much time as nationwide will ask of you.   

I did a case last week where the client had already spent nearly 3 hours on the phone to Nationwide.  I spent 30 minutes on the phone, she emailed all the docs over and I did the rest behind the scenes.   Why lenders direct ask for so much time to be spent on the phone is a mystery to me.   

Even if rates and deals are the same I would use a broker just because it is so much easier

kingstreet

Are you moving house?

A remortgage is a change of lender to repay existing mortgage on same property.

Mrs_F_2017

Thanks both - will stick to our normal broker then. 

@kingstreet no we are not moving home. Looking to remortgage now ahead of the end of our fixed deal as the potential interest rate saves us more than the cost of the ERC. 

kingstreet

You are asking Nationwide for a rate switch or customer retention product. This is not a remortgage so don't look at remortgage products as they are for new borrowers to the lender.

A mortgage is a deed which ties a loan to a security property. Yours is not changing, therefore there is no "remortgage."

jimjames

Mrs_F_2017 said:

Thanks both - will stick to our normal broker then. 

@kingstreet no we are not moving home. Looking to remortgage now ahead of the end of our fixed deal as the potential interest rate saves us more than the cost of the ERC. 

Just switch to the new product directly with Nationwide. You won't be able to automatically switch online as the term hasn't ended but it will be a simple case of changing product rather than applying for a new mortgage if none of the terms are changing.

getmore4less

Make sure you have done the calculations properly.
Many get them wrong.

show your workings

then add  the details of your current mortgage  and what you plan to move to if you stay with nationwide.
(current amount, rates, full term, payment,  fix term left, ERC, fees.
do the terms to the month not approx.
if the ERC changes months to next change and new ERC(%)
if planning to overpay actual planned payment as it makes a difference.

Do you plan to pay the ERC and fees up front or add(If allowed)
How much ERC free overpayment left before it resets
 

Mrs_F_2017

kingstreet said:

You are asking Nationwide for a rate switch or customer retention product. This is not a remortgage so don't look at remortgage products as they are for new borrowers to the lender.

A mortgage is a deed which ties a loan to a security property. Yours is not changing, therefore there is no "remortgage."

Thanks Kingstreet, I wasn't aware of the difference the terminology makes. In my mind I was 'remortgaging' as the old mortgage would be gone a new contract in place due to fixed deals etc.

@getmore4less thank you for your advice. I will double check all the calculations today. We can pay the ERC's up front. 

goodwithsaving

I'm doing the same, but I'm already with Nationwide so have to go direct. Nationwide will only do it via broker if you're not already with them.

Mrs_F_2017

@goodwithsaving that's interesting - we certainly went via our broker last year when we ported our nationwide mortgage and got a further advance when we were an existing customer. 

We'll check with our broker I think that Nationwide is our best option and go from there. 

goodwithsaving

Bear in mind they'll calculate ERCs at time of application, not completion of the new mortgage (at least, that's what they told me 2 minutes ago on the phone)