Remortgaging process

PawelK

Hello.

I will be remortgaging for the first time and would like to know asany details of the process itself as possible.
My current fixed term will finish at the end of October and I already know from Nationwide that I can start looking for a new deal five months earlier (ie. from 1st June).
If I understand correctly, whether I will stay with them or, if other banks offer better deal, move to a different lender, the new deal can be "hedged" and won't start until 1st November?

I know about comparing other lenders' offers with my current one by not just the interest rate but also any extra costs such as legal and valuation fee (which I think is usually not applicable if you stay with your current bank) or overpayments etc.

Is there anything else I should consider? I'd like to be well prepared when the time comes.

Many thanks and have a good day.

K_S

@pawelk

If you're staying with NW (that'll be a product-transfer/product-switch/rate-switch) you should be able to time your switch to start between 1 Aug and 1 Nov. If you're remortgaging (changing lenders) then it'll be Nov 1.

With almost all mainstream remo products you will get a free valuation and free-legals or cashback that will cover the conveyancing costs as lenders are trying to make it "cost-free" to get new business.

Generally speaking, it'll be hard to beat NW retention rates.

PawelK

K_S said:

@pawelk

If you're staying with NW (that'll be a product-transfer/product-switch/rate-switch) you should be able to time your switch to start between 1 Aug and 1 Nov. If you're remortgaging (changing lenders) then it'll be Nov 1.

With almost all mainstream remo products you will get a free valuation and free-legals or cashback that will cover the conveyancing costs as lenders are trying to make it "cost-free" to get new business.

Generally speaking, it'll be hard to beat NW retention rates.

Thank you. It's good to know that if I stay with NW, I can actually start my new deal earlier. I'd be looking at five years fix again.

Interesting you say about hard to beat NW. Unless they offer me product switch rate lower than what they currently offer on comparison websites, I cannot see them in the top ten of the best deals at the moment.

getmore4less

Be careful with the comparison sites they don't always get the right answers when the deals are close because they only look at the costs, payment and fees, they don't look at the cash flow and amount owing.

PawelK

getmore4less said:

Be careful with the comparison sites they don't always get the right answers when the deals are close because they only look at the costs, payment and fees, they don't look at the cash flow and amount owing.

Thank you but could you elaborate a bit more on the cash flow bit? Do you mean overpayments, ERC structure or something else?

getmore4less

To do a proper like for like comparison any cash inputs need to be applied to all options being compared at the same time.

Common errors are
using different monthly payments
not using the planned payment.
Not accounting for any fees properly

it is not just the total of the payment but the timing then how much goes on interest and how much pays off capital.

try this one with your workings

£100k 20y full term 5y fix
1.77% £999
2.00% £0 

housebuyer143

PawelK said:

Hello.

I will be remortgaging for the first time and would like to know asany details of the process itself as possible.
My current fixed term will finish at the end of October and I already know from Nationwide that I can start looking for a new deal five months earlier (ie. from 1st June).
If I understand correctly, whether I will stay with them or, if other banks offer better deal, move to a different lender, the new deal can be "hedged" and won't start until 1st November?

I know about comparing other lenders' offers with my current one by not just the interest rate but also any extra costs such as legal and valuation fee (which I think is usually not applicable if you stay with your current bank) or overpayments etc.

Is there anything else I should consider? I'd like to be well prepared when the time comes.

Many thanks and have a good day.

I would stay with your current lender if the rates are good. An actual remortgage to another lender is really annoying and involves valuations and solicitors. 
You stay with nationwide and they send you one piece of paper you sign and you are done. 

PawelK

housebuyer143 said:

PawelK said:

Hello.

I will be remortgaging for the first time and would like to know asany details of the process itself as possible.
My current fixed term will finish at the end of October and I already know from Nationwide that I can start looking for a new deal five months earlier (ie. from 1st June).
If I understand correctly, whether I will stay with them or, if other banks offer better deal, move to a different lender, the new deal can be "hedged" and won't start until 1st November?

I know about comparing other lenders' offers with my current one by not just the interest rate but also any extra costs such as legal and valuation fee (which I think is usually not applicable if you stay with your current bank) or overpayments etc.

Is there anything else I should consider? I'd like to be well prepared when the time comes.

Many thanks and have a good day.

I would stay with your current lender if the rates are good. An actual remortgage to another lender is really annoying and involves valuations and solicitors. 
You stay with nationwide and they send you one piece of paper you sign and you are done. 

Thank you. I've noticed that many replies on here under different posts advise staying with the current lender. Hopefully they can offer me decent rate and not too far off the best buys. This would save me time, hassle and extra expenses but I'll surely compare that when the time comes. I am positive that me going under 60% LTV will work in my favour.