Remortgaging - Have I missed something? It's very easy...

[Ahleckz]

So, my 3 year fix is up in April. I've been shopping around, chatting to Habito and made an appointment with a broker. I also looked at switching to a new deal with Nationwide (my current provider).

Nationwide (my current provider) have offered me a deal which I'm happy with.
Habito originally offered me a worse deal but will now match Nationwide's offer.
I can get a lower monthly payment by switching provider but I'll have to pay an initial fee + legal fees to change meaning it's more expensive. (My deal with Nationwide is 94% of the "best" deal from MSE)

So, I filled out a few forms. They've assumed the new value of my property (it's gone up a bit, I have no issue with the new valuation) instantly and gave me a new offer. I applied. They've confirmed it and new mortgage starts on Feb 1. No uploading documents/instructing solicitors/people visiting my property, just click, click, save some money, reduce term, click, done.

This to me just seems far to easy... Have I missed something obvious? I found buying my flat 3 years ago pain and stress free and this has again has been exactly the same. Am I just super lucky?

Apologies for the 'how do I do life' thread, but my girlfriend recently remortgaged via Habito and it was a complete faff (though she changed provider), no family members have remortgaged in years and any of my friends that have done rely entirely on brokers to do it for them.

 

[The_Abyss]

Yep, with no additional borrowing and staying with the same provider, it really can be that easy.

 

[ZG002]

Yep did it about 6 months ago and our current provider came back with a deal we were happy with, as with yourself a form to fill in and sign and that was it.

 

[planty]

Same, stuck with our provider on a different deal and it was really simple.

 

[SPG]

Yes if you do not change provider its very very straightforward.

 

[Ahleckz]

Thanks guys, just wanted some reassurance.

 

[robj20]

I'm hoping we get a good deal from the current provider. Bank of Ireland.

Are there usually options to add some cash to pay off a chunk of the mortgage at renewal time.

 

[stigggeh]

Thanks guys, just wanted some reassurance.

I felt the same when my first fix come to an end. The bank actually wrote to me in advance advising that my current fix is coming to an end they think my house has gone up in value and i could get a better rate with a new fix. I did a bit of research thinking 'where's the catch' and 'is this like insurance renewals where i'm going to get shafted for loyalty'. I found their rates most competitive for me so I popped in and cut my interest rate almost in half. Took about 20 minutes and cut about 200 a month off the intrest charged. Continued with the existing monthly payment which was comfortable and the balance is coming down nicely.

Currently on my second fix, this time locked in for 5 years at a nice low rate hoping to pay off a sizable amount while rates are low.

 

[Psycho Sonny]

Nationwide I find may not be the absolute cheapest but they are usually in the top 10 out of 200+ companies.

However they offer good cashback deals and brilliant customer service. Their terms and conditions are also very good when it comes to repayments and payment holidays, etc.

I'm with them too and I think it's worth the £5 A month extra interest to go with a reputable company.

They release statements every so often to do with house prices so it's something that they monitor constantly. It's why they can instantly make a valuation up for you.

You should really read their newsletters.

 

[Mercenary Keyboard Warrior]

Another vote for nationwide. Honestly the fact they are a building society as opposed to a bank shows through.
This was always the case that building societies were better than banks, and partly the reason unfortunately the banks went on a buying spree buying out the building societies. They were compared to banks, cash rich, with longer term investors and borrowers. The building societies had a reputation for being behind the curve on tech, which was partly true. If you consider the mess most of the banks have made since though you can see that they aren't as good as they would like to think either

When I bought (around 3 years ago) I also selected Nationwide even though slightly more expensive. Although as I wanted a longer term fix (10 years) there were less options. Plan was to pay off in 10, by investing to have the balance for the 10th year ready to pay off. However I changed that plan and started to max my additional repayments, should have it all cleard off in about 7.25 years (so 4 to go) if I can stick to the plan.

I was lucky in that I got to trial having a personal contact at Nationwide for my purchase (no idea if they ever rolled the system out) which mean't when I did run into an issue I had a direct number of someone to call. Saying that I also found their call centre was really good.

 

[Sparky__H]

Continued with the existing monthly payment which was comfortable and the balance is coming down nicely.

Well done!! So many people would have instantly reduced their payments and spanked the rest on useless tat.

Just had a mortgage approved with Nationwide this morning. Got it before the fee went from £999 to £1199 (£500 cashback as well whoot!)

By all of everyone's positive reviews looks like we went with the right lender.

+1 For Nationwide

 

[SaintJimmy]

We're with Nationwide too, no complaints here.

 

[JustBen]

I'm changing provider away from TSB, i am going to a 5 year fixed rate . Looking at most of the deals i can get it cheaper than what i am currently paying and take a couple of years off the mortgage at the same time.

 

[Buffman]

It's not even that hard to remortgage with a new provider. I did it and also took circa 10k out the mortgage and largely increased the valuation due to renovation, didn't have too many hurdles to jump through.

Went from 90% LTV to 75% LTV whilst borrowing more money...

 

[JustBen]

It's not even that hard to remortgage with a new provider. I did it and also took circa 10k out the mortgage and largely increased the valuation due to renovation, didn't have too many hurdles to jump through.

Went from 90% LTV to 75% LTV whilst borrowing more money...

I am using a broker, with saving 2 years off the mortgage off mine it is saving 11k in just payments (let alone the interest on top) and the likely deal will be around £80-100 month cheaper.
The only hurdle i've had is the first deal we went for was with metro bank who said i couldn't afford the mortgage as they took my last 3 P60's and averaged them.. my wage has gone quite a bit in that. Also didn't agree with them saying it wasn't affordable when its cheaper than what i'm paying! who knows eh! Currently going through the process with Natwest at the moment.

 

[HangTime]

^Cheaper Mortgages can be considered unaffordable even if you have had no issues with making current repayments, for example if:
-You have less savings than you used to have
-The bank considers you more of a risk now than the old bank did at the time, perhaps due to changes in the economy or some other rating factor

3 years average on P60 seems a bit weird assuming you are in permanent employment, I can see why this might be done for contractors. For most people under the age of 40 I'd imagine that their current (and hence projected future) income is a fair bit higher than 3 years ago.

As for the OP, remortgaging with the same provider should be fairly straightforward given that:
-They already have all your details as an existing customer including title deeds etc so less legal work needed
-You have a track record (hopefully!) of making payments on time every month
-Their lending criteria probably hasn't changed as drastically as if you were to compare with a different provider

 

[balls]

I am using a broker, with saving 2 years off the mortgage off mine it is saving 11k in just payments (let alone the interest on top) and the likely deal will be around £80-100 month cheaper.
The only hurdle i've had is the first deal we went for was with metro bank who said i couldn't afford the mortgage as they took my last 3 P60's and averaged them.. my wage has gone quite a bit in that. Also didn't agree with them saying it wasn't affordable when its cheaper than what i'm paying! who knows eh! Currently going through the process with Natwest at the moment.

Had a similar situation, and eventually had to go to Santander for the missus' income as they only look at the most recent two years worth rather than 3-4 bit of a kicker as she was on maternity leave (without pay) for the 3rd year so it dramatically dropped her average income.

 

[b0rn2sk8]

I recently went though the same process, my current bank quoted me something I was reasonably happy with, I shopped about and another high street bank offered me a better deal which was in the top 3 cheapest on MSE.

I filled out their form online, uploaded 1 bank statement and a few payslips each, did a telephone appointment to go through affordability, one follow up call to confirm I wanted to go ahead once I got the quote in writing. I got one letter from the banks appointed law firm with 2 forms I needed to sign and send back, 3 weeks later it was all done and moved to the new provider. I didn't even need to contact my current provider.

It should be straight forward if your circumstances are 'normal', it only gets complex if you are self employed, have irregular income or are pushing it on the affordability. The last point is normally the biggest issue.

 

[PiKe]

I had to stay with NatWest and took on a new deal, charged me 995 in fees but interest rate is 1% lower than it was before.

Other providers didn't want to take me on because I have PCP on my car (which if I had realised it would have affected eligibility I wouldn't have done it).

 

[DB_SamX]

Mine was just as easy. HSBC reduced my rates, valued my flat above market value (based in my neighbour's sale price) and I couldn't find a better deal! Snapped the offer up! I didn't even have to submit any income infom