Author Topic: Remortaging Soon - What's It Like?  (Read 483 times)

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Offline Larissa

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Remortaging Soon - What's It Like?
« on: January 18, 2018, 02:56:20 PM »
The 2 years is up on out 1.99% rate in a couple of months.  Unless we remortgage we'll be put onto Santander's 3.4% (I think?) rate automatically.  So we'll be remortgaging!  Exciting times here!

Does anyone have recommendations or advice about what to look for or how to go about doing this?  This is our first flat so this is our first experience with this.  We're also both self-employed and this year that's ending 31st March 2018 right before we remortgage is so far worse than we expected.  We still have 2 months to turn that around.  Realistically our financials won't have been processed for the 2017/2018 tax year when we remortgage but it's still on our minds.

Offline KFdancer

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Re: Remortaging Soon - What's It Like?
« Reply #1 on: January 18, 2018, 04:50:31 PM »
I'm not self-employed but we remortgaged in September/October and it was really easy.  As we didn't change lenders we didn't even have to provide financials.  If we had changed lenders, we would have.  Luckily our current provider had the best rate anyways.  We also didn't have to get a valuation!

Offline jfkimberly

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Re: Remortaging Soon - What's It Like?
« Reply #2 on: January 18, 2018, 05:22:01 PM »
I'm not self-employed but we remortgaged in September/October and it was really easy.  As we didn't change lenders we didn't even have to provide financials.  If we had changed lenders, we would have.  Luckily our current provider had the best rate anyways.  We also didn't have to get a valuation!

Really?  Not getting a valuation would be nice, as we have started renovations, but not completed any.  (Our house is in worse shape, at least cosmetically, now than it was when we moved in.)  I doubt we'd fare well if the bank saw our lack of kitchen.  ;)  But we have a 5-year fixed at a decent rate, so we're 4 years away from needing to look into refinance, at least.  I really hope we have a kitchen by then!
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Offline KFdancer

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Re: Remortaging Soon - What's It Like?
« Reply #3 on: January 18, 2018, 05:41:55 PM »
Really?  Not getting a valuation would be nice, as we have started renovations, but not completed any.  (Our house is in worse shape, at least cosmetically, now than it was when we moved in.)  I doubt we'd fare well if the bank saw our lack of kitchen.  ;)  But we have a 5-year fixed at a decent rate, so we're 4 years away from needing to look into refinance, at least.  I really hope we have a kitchen by then!

Yup!

We did have to have our rental valued as we changed lenders... and sadly the valuation had dropped.   ::)  Thank you Brexit!  But we have a tiny mortgage on that house so the drop in value didn’t impact us.

Offline Albatross

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Re: Remortaging Soon - What's It Like?
« Reply #4 on: January 18, 2018, 06:15:36 PM »
I work for a mortgage lender and I process these all day, every day.  :)
'Remortgaging' is usually when you change lender.  If you're staying with the same lender, but moving to a different product after your fixed rate ends, they usually call it something like 'transfer of product' or 'switching package'.

In my bank, if all you're doing is moving from one fixed rate which is ending, to another fixed rate or other product in our range, and not borrowing additional funds, we don't ask for proof of income, and there's no need for a new valuation.  You might have to pay an arrangement fee to get the lowest rate.  Or if you take a slightly higher rate, the fee would be waived.

It's pretty easy and painless.  :)

Offline Larissa

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Re: Remortaging Soon - What's It Like?
« Reply #5 on: January 18, 2018, 06:39:36 PM »
@KFdancer it hadn't even occurred to me that we might need a valuation!  We're in London and completed before Brexit so I'm guessing our property value has dropped.  We overpay on the mortgage and had a large deposit so we won't be upside down or anything.  But valuations hadn't even crossed my mind!

@Albatross Thanks!  We're not sure what we're doing yet, switching lenders or going with the same.  It depends on the products on offer and what will suit us.  I have no problem with Santander, but I do have a problem with switching from the 1.99% to the 3.75% (I checked earlier today).

It wasn't terrible the first time, but it feels like we *just* f-ing did all this paperwork and I'm being resistant, and nervous actually, about it.

Offline KFdancer

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Re: Remortaging Soon - What's It Like?
« Reply #6 on: January 18, 2018, 06:45:47 PM »
@KFdancer it hadn't even occurred to me that we might need a valuation!  We're in London and completed before Brexit so I'm guessing our property value has dropped.  We overpay on the mortgage and had a large deposit so we won't be upside down or anything.  But valuations hadn't even crossed my mind!

@Albatross Thanks!  We're not sure what we're doing yet, switching lenders or going with the same.  It depends on the products on offer and what will suit us.  I have no problem with Santander, but I do have a problem with switching from the 1.99% to the 3.75% (I checked earlier today).

It wasn't terrible the first time, but it feels like we *just* f-ing did all this paperwork and I'm being resistant, and nervous actually, about it.

Your house value is unlikely to have dropped in London.  We have two properties.  One has gone up and the other down.  Fortunately the one has gone up much more than the other has dropped!

Offline Albatross

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Re: Remortaging Soon - What's It Like?
« Reply #7 on: January 18, 2018, 06:58:44 PM »
Quote
@Albatross Thanks!  We're not sure what we're doing yet, switching lenders or going with the same.  It depends on the products on offer and what will suit us.  I have no problem with Santander, but I do have a problem with switching from the 1.99% to the 3.75% (I checked earlier today).

You're lucky their standard variable rate is 'only' 3.75% -- ours is 4.95%!
« Last Edit: January 18, 2018, 07:01:49 PM by Albatross »

Offline Larissa

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Re: Remortaging Soon - What's It Like?
« Reply #8 on: February 01, 2018, 03:55:55 PM »
We got a letter today.  I think we (I) have been stressing for no reason.  It just feels like such an expensive and stressful couple of months (lots happening with my family in the States too) and I was really not knowing how to start the process.

The letter from our mortgage provider today told us how to log in and pick from one of their options.  I logged in just to further stress myself but was pleasantly surprised.  There were 6 or so options I could chose from online.  I still have a couple questions as there now seems to be a fee for early repayment we haven't had before but I feel better.  Much better.

I can't believe 4.95% @Albatross !!!  That's crazy high, right?  I mean, our options started at 1.89% for 2 years.

Offline KFdancer

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Re: Remortaging Soon - What's It Like?
« Reply #9 on: February 01, 2018, 03:59:55 PM »
Glad it's a weight off.

There is typically a prepayment fee if paid off during the fixed term period.  Albatross - correct me if I'm wrong.

Offline Larissa

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Re: Remortaging Soon - What's It Like?
« Reply #10 on: February 01, 2018, 04:20:58 PM »
It seemed to be saying that the fee was for any overpayments during that fixed term.  Currently we overpay about every quarter, never a large amount, but it means over a given year we actually pay about 1.25 years of the principal (did I word that correctly?).

I mean, I'll query that with the provider to be sure I read right, a fee for any overpayments, but at first read that's how I understood it.  If I read correctly that's different to what we currently have.

Offline KFdancer

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Re: Remortaging Soon - What's It Like?
« Reply #11 on: February 01, 2018, 04:25:00 PM »
It seemed to be saying that the fee was for any overpayments during that fixed term.  Currently we overpay about every quarter, never a large amount, but it means over a given year we actually pay about 1.25 years of the principal (did I word that correctly?).

I mean, I'll query that with the provider to be sure I read right, a fee for any overpayments, but at first read that's how I understood it.  If I read correctly that's different to what we currently have.

That I haven't heard of before!   :o

Offline Albatross

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Re: Remortaging Soon - What's It Like?
« Reply #12 on: February 01, 2018, 05:34:13 PM »

There is typically a prepayment fee if paid off during the fixed term period.  Albatross - correct me if I'm wrong.

That's right.   [smiley=smart.gif]

Offline Albatross

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Re: Remortaging Soon - What's It Like?
« Reply #13 on: February 01, 2018, 05:40:12 PM »

I can't believe 4.95% @Albatross !!!  That's crazy high, right?  I mean, our options started at 1.89% for 2 years.

The 4.95% is our standard variable rate... the rate you would go on to after your 2 year fixed period ended.