Remortgaging with same lender during a fix

Mahsroh

Just looking at options at the moment. Our mortgage offer for the house we've moved into fairly recently was done in May 2021 on a 90% LTV. Since then rates have significantly improved, so looking at the options I think once i'm into my final year of the fix from 1st September (a while to go yet I know) it may be beneficial to pay the ERC and buy ourselves out of the fix and get a new deal.... speculative at the moment as it depends what happens to rates between now and September, but based on the products on the market as of today it looks like it would be worthwhile. By September it is also looking likely we'll be in the 85% LTV bracket too. 

However, ideally, i'd like to stick with my current lender (Nat West). It might be a daft question, but are Nat West likely to offer me a new deal in those circumstances? Logic tells me of course they would, but from my experience what i think is logical and what financial institutions think is logical is often very different! 

amnblog

You will probably pay a 0.75% early repayment charge. So you need to save that in a year, and cover any new product fee, sounds unlikely.

getmore4less

What rate is your 90% LTV 
What is the ERC now and in September when you have 1year to go
What rates are the current 90% and 85% LTV.

Mahsroh

Thanks but I’ve already crunched the numbers so wasn’t looking for advice on whether to buy myself out of my fix or not. 

I was just asking if it was likely that the same lender would allow me to buy out of our fix AND also remortgage with them, but looks like nobody knows. 

julicorn

Mahsroh said:

Thanks but I’ve already crunched the numbers so wasn’t looking for advice on whether to buy myself out of my fix or not. 

I was just asking if it was likely that the same lender would allow me to buy out of our fix AND also remortgage with them, but looks like nobody knows. 

With the lenders I've been with so far (Accord and Nationwide) it's always been possible. It's been a very simple process, just clicking on a button in the online account to switch the deal/product, and it shows you what products are available to you now, and what your ERC is (if applicable). 

I'd still recommend posting your figures here, there are people on this forum who are a really good second pair of eyes and might spot something you hadn't considered yet. 

getmore4less

It is not surprising people get it wrong.

The regulatory rules on working out comparisons do it wrong

This has filtered through to calculators and the tools brokers use.

[Deleted User]

Yes you will be able to pay natwest to exit the fix. They will then move to their standard variable rate and you can then do a Product Transfer (not a remortgage) 

Thrugelmir

Mahsroh said:

I was just asking if it was likely that the same lender would allow me to buy out of our fix AND also remortgage with them, but looks like nobody knows. 

Of course they would. As you would have paid the contractual penalty to exit the existing product. A business transaction nothing more. 

Mahsroh

Deleted_User said:

Yes you will be able to pay natwest to exit the fix. They will then move to their standard variable rate and you can then do a Product Transfer (not a remortgage) 

Thank you. This answers my question perfectly. 

Mahsroh

Thrugelmir said:

Mahsroh said:

I was just asking if it was likely that the same lender would allow me to buy out of our fix AND also remortgage with them, but looks like nobody knows. 

Of course they would. As you would have paid the contractual penalty to exit the existing product. A business transaction nothing more. 

Absolutely, but Halifax previously wouldn't let me switch a consent to lease on a variable rate to a fixed rate BTL, even though I told them i'd leave and find another lender (which I did), so nothing surprises me anymore, hence the question. 

[Deleted User]

Mahsroh said:

Thrugelmir said:

Mahsroh said:

I was just asking if it was likely that the same lender would allow me to buy out of our fix AND also remortgage with them, but looks like nobody knows. 

Of course they would. As you would have paid the contractual penalty to exit the existing product. A business transaction nothing more. 

Absolutely, but Halifax previously wouldn't let me switch a consent to lease on a variable rate to a fixed rate BTL, even though I told them i'd leave and find another lender (which I did), so nothing surprises me anymore, hence the question. 

Consent to let is a residential regulated mortgage.  BTL is an unregulated mortgage.  Although they are both mortgages they have different regulation behind them so its not as easy as switching between them.  Im not aware of any lender that switches between regulated and unregulated mortgages