Early remortgaging?

[Namelessnancy]

Our fix comes to an end in November. Our mortgage provider is offering a ten year fix we'd like to apply for. The earliest we can apply with no early repayment penalty is July. We'd like to go ahead and apply now though as the penalty payment would be much less than the increase in interest over the ten year fix if there is a further 0.25% rise in rate. We're happy to take the chance that there won't be any such rise just to get it set and fixed.

We've been told if we apply early we need a 90 minute advice meeting with nationwide. That's also ok, if a bit annoying. However I'm not sure if applying early affects our chances of actually being approved? There are no changes in our circumstances since we last remortgaged (other than the loan being smaller now and the house value rising). I'm worried they'll be suspicious we expect job losses or change of some sort and if we get declined now it could affect us reapplying in a few months. Would appreciate any advice. Thanks

I don't think you can remortgage ahead of the earliest time without breaking the t&Cs of your mortgage. We were in the same position and couldn't. 10yr fixed, how is that even possible?!

We're definitely able to apply but would need to pay an early redemption fee of 1% of the outstanding. With the way things are a ten year fix would offer us so much certainty over payments we'd love to go for it.

We have just done this and paid the early repayment charge to break our current mortgage. We fixed for 10 years at 1.9% and even taking in to account the redemption charge which was substantial, it would still work out cheaper over the 10 years.

I don’t think it’s unusual to remortgage early in order to save money in the long term. We considered it but wasn’t worth it in the end. I would seek advice about a 10 year fixed, I was keen too but DH was against it as we haven’t heard great things eg if your circumstances change they’re very hard and expensive to get out of. Weird you have to go to an advice meeting with Nationwide, what’s that about? Independent advice is surely more impartial. But we have always used a broker and I’ve never spoken to the lender direct.

Thanks everyone. I wondered if the advice thing is to cover themselves from allegations of misselling given we'd be paying the early redemption. Last time we remortgaged with them it was pretty straightforward and we didn't need to take any advice. The rate on offer is, I think, only available to existing customers.

A good point re being tied into it for so long. I think worse case it'd be further early repayment sums if anything hugely unexpected happened. That said it's not an enormous mortgage for us and we don't have plans to ever move.

If your circumstances are such that a ten year fix from that date suits you best go for a meeting and it’s likely you will get it.

You may well be able to negotiate a waiver or reduction in the early repayment fee if staying with the same lender, especially if you could consider products from their competitors.

@Namelessnancy

Thanks everyone. I wondered if the advice thing is to cover themselves from allegations of misselling given we'd be paying the early redemption. Last time we remortgaged with them it was pretty straightforward and we didn't need to take any advice. The rate on offer is, I think, only available to existing customers.

A good point re being tied into it for so long. I think worse case it'd be further early repayment sums if anything hugely unexpected happened. That said it's not an enormous mortgage for us and we don't have plans to ever move.

The advice call is exactly for this reason. It is to avoid any future complaints about misspelling. You are paying them an early repayment charge but staying with them. This is something that definitely requires advice so that they are being transparent and you fully understand the cost implications