Any Point in Looking to Remortgage?

Kwaker_Knacker · 13 October 2018 at 1:29PM

Hi,

Our 5 year fixed rate Nationwide mortgage (3.29%) is due to end in June. My wife is 4 months into an 8 and a half year DMP for £6.5k credit card debt.

Is there any point in looking for a remortgage deal, or do I resign myself to being on the Natonwide BMR for ever? My MSE Credit club score is 988, my wife's is 390.

I think I know the answer

Thanks.

enthusiasticsaver · 13 October 2018 at 2:09PM

Go for a remortgage deal with nationwide. If you are already with them They should not credit score you.

litepay · 13 October 2018 at 3:13PM

You mean to switch to a new deal / product transfer with Nationwide? If OP stays with the same lender it's not called remortgage...

OP, you can switch to a new fixed deal online, there are no credit checks if you switch online and if you don't increase the amount borrowed and you keep the same term.

Be careful with the timing when you switch though, so that you don't pay ERC.

"Is your existing mortgage deal ending soon? You can apply to switch and reserve a new rate up to 5 months before the end of your fixed or tracker deal."

nationwide.co.uk/products/mortgages/existing-customer-switching/apply

Kwaker_Knacker · 13 October 2018 at 3:26PM

Thanks for the replies.

I know I'm a bit early to be looking with my current deal not ending until June, but HSBC (who I have my current account with) have a 5 year no fee fixed rate for 2.09%, with Nationwide having one at 2.14% (these are the only ones I've looked at so far with me having ties with both). So if we can just take a new Nationwide deal without getting credit checked, then that'll be great. In reality, the lack of hassle for 0.05% difference would have me going for the Nationwide deal anyway.

Just goes to show there's no point in assuming anything before checking with the MSE crowd, thanks for that. :T

Thrugelmir · 13 October 2018 at 4:13PM

Kwaker_Knacker wrote: »

I know I'm a bit early to be looking with my current deal not ending until June, but HSBC (who I have my current account with) have a 5 year no fee fixed rate for 2.09%, with Nationwide having one at 2.14%

You'll need to factor in the costs of switching lender. Mortgage exit fee, valuation fee and legal costs for example. Money that might be better spent clearing your wife's DMP quicker.

Will affordability be an issue? 102 months to clear a £6.5k debt. Suggests it might be. Treating the DMP as an interest free loan won't be viewed favourably either.

Kwaker_Knacker · 14 October 2018 at 10:19AM

I see what you're saying, but because it's her debt, she sorts it. Bar making sure it's getting paid, I don't get involved. It's a very touchy subject at the best of times.

Dandytf · 14 October 2018 at 5:52PM

litepay wrote: »

You mean to switch to a new deal / product transfer with Nationwide? If OP stays with the same lender it's not called remortgage...

OP, you can switch to a new fixed deal online, there are no credit checks if you switch online and if you don't increase the amount borrowed and you keep the same term.

Be careful with the timing when you switch though, so that you don't pay ERC.

"Is your existing mortgage deal ending soon? You can apply to switch and reserve a new rate up to 5 months before the end of your fixed or tracker deal."

nationwide.co.uk/products/mortgages/existing-customer-switching/apply

Interesting indeed, when did Natwide change to up to 5 monthis from up to 3 months.
I'll need to remember that for mid 20019.

OP -choose a deal online with Natwide -I've done that twice during SC DMP -though sometimes I have wished I could have lowered term to 10yrs, though no complaints from me.

Dandytf · 17 October 2018 at 9:18PM

litepay wrote: »

You mean to switch to a new deal / product transfer with Nationwide? If OP stays with the same lender it's not called remortgage...

OP, you can switch to a new fixed deal online, there are no credit checks if you switch online and if you don't increase the amount borrowed and you keep the same term.

Be careful with the timing when you switch though, so that you don't pay ERC.

"Is your existing mortgage deal ending soon? You can apply to switch and reserve a new rate up to 5 months before the end of your fixed or tracker deal."

nationwide.co.uk/products/mortgages/existing-customer-switching/apply

I'm still reading....your current deal is ending in the next 3 months

Edited
@litepay, my error you could have posted the most important info of my mtg.
I since reviewed existing Natwide Customers deal coming to end and it is as you had advised.
You can apply to switch and reserve a new rate up to 5 months before the end of your fixed or tracker deal.

Amazing I'll take 5 months from Aug' 2019
Maybe I'll choose a new deal from April 2019
That could be amazing, only of course if interest rates don't fly upwards next few months.
I'm very happy with the chance of a decent deal once again.
Thanks!

Thrugelmir · 17 October 2018 at 11:07PM

Kwaker_Knacker wrote: »

I see what you're saying, but because it's her debt, she sorts it. Bar making sure it's getting paid, I don't get involved. It's a very touchy subject at the best of times.

However it's your joint mortgage. Lenders aren't going to distinguish liability. When assets can be passly freely between husband and wife.

Dandytf · 18 October 2018 at 8:08AM

Secure Natwide message received today, their still quoting upto 3 not 5 months when switching to a new mortgage deal,. Whereas their website clearly states upto 5 months.
Follow up secure message sent.
I'll post once I get the correct answer.
Not the 1st time info from Natwide website can be taken us useable as such.

Zero_Sum · 18 October 2018 at 8:28AM

Kwaker_Knacker wrote: »

Thanks for the replies.

I know I'm a bit early to be looking with my current deal not ending until June, but HSBC (who I have my current account with) have a 5 year no fee fixed rate for 2.09%, with Nationwide having one at 2.14% (these are the only ones I've looked at so far with me having ties with both). So if we can just take a new Nationwide deal without getting credit checked, then that'll be great. In reality, the lack of hassle for 0.05% difference would have me going for the Nationwide deal anyway.

Just goes to show there's no point in assuming anything before checking with the MSE crowd, thanks for that. :T

And Nationwide pay £100 retention (or at least they did with me 6 months back) which eats into their rate. Although despite rates going up, theyve dropped it by 0.05% so they might not.

Any Point in Looking to Remortgage?

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