End of fixed-term mortgage: what happens if I want to stay with same lender?

[KrillBrill]

Hello, I would appreciate some help in understanding the process when changing mortgage products with the same lender. Our 5-year fix is coming to an end and prior to this we always remortgaged with another bank. I am however starting to realise, that I would likely get the same rate with my current bank as any other providers. So would be interested in understanding how much hassle it saves when one stays with the same bank. Could someone please explain what happens in terms of affordability checks, determining monthly payment and the mortgage length, house valuation...etc? Is all of this assessed again or do we just switch to a higher interest rate but remain on the same overall length? Thank you very much for any help!

Ive just done this with Barclays as I'm on an ill health pension and benefit top up and Its just too many hoops to jump through.
As long as I didn't change anything eg term length I could literally choose a rate and click a few buttons. I can then change it if I want anytime before my renewal. Barclays only allow 3 months before to renew but some I know can be 6 months. I did it all online as the news were saying rates would go up but I could have done it with one of the advisors.

I expect it depends on the lender but I've always stayed with mine as it's super easy and no checks. Their rate was competitive with others. I just select the new deal and that's it.

We just stayed with Barclays last time we remortgaged as their rates were so competitive, but also because I’d just been made redundant and we were worried about the checks even though I started a new job with no break. You just select the new deal and that’s it. Very easy.

With nationwide you just click a couple of buttons on the website. It’s way easier.

We just did this too. really easy. They sent new rates 4 months before end of deal and we just picked one. Had the option to choose a different term. No affordability checks or anything. They valued the house a bit above what it was 5 years ago (presume they just add a % for increase in values over the period) so that could affect the LTV although ours was below 65% anyway.

Wow, amazing, thank you so much everyone. This sounds way easier than previous remortgagings we have done. The mortgage advisor never explained that staying with the same lender is an option and in fact a competitive one by the look of it. Thank you!

Depends on the lender but for most these days you just do a few clicks online/in app and choose a new rate.

It should be fairly straightforward and not as involved as a new mortgage application. Our fixed term came to an end last year and we knew we'd be moving house, so we just let it go onto the variable rate and kept the payment amounts the same, which means we've been overpaying each month. I don't remember us having to do any affordability checks and they didn't revalue our house (or if they did it was a desktop check their end and didn't change anything for us).

This, have been with them for 16 years, I always compare rates against other lenders but Nationwide rates work better for us as an existing customer so I just click a few buttons and I am on the new rate.

Nationwide, like lots of other lenders contacted us 6 months before the end of product date to offer new rates and you can have it set it ready to go when your current rate ends.

There have never been any additional checks on anything but then we didn't have childcare costs so in the affordability checks previously carried out there was nothing like that to consider.

Thank you! Is 65% a magic number in terms of LVT? We will likely be on the cusp of that, should we try to overpay a bit in advance to bring it below?

That’s probably because they don’t get any commission if you do it yourself and stay put!

Thank you, same lender here. I feel like a total numpty not having checked same lender during the previous remortgages.
Childcare costs caused and affordability issue for us last time and I am worried that cost of living will now mean we come out even less favourably. We have never missed payments, so hoping we are considered reliable customers.

Honestly, the penny dropping now makes me feel like a right idiot 😞

If you can overpay enough to slip a LTV band it can definitely be a good idea if you don't need the cash for emergencies etc. have a look at the change in interest rate between the two bands. It can be worth getting the house revalued if that slips you a band. Last time we did it, it cost <£80 to our lender and didn't make the process more complicated (still no affordability checks etc as same lender)

My advice is to ring them and ask that question about over payment to bring you within the 65% LTV. They are hopefully helpful.

Yes, that's exactly what I was about to ssy. The mortgage advisor has a financial interest in you changing product.

That’s probably because they don’t get paid very much for client retention

That’s terrible! Of course you can. They should have explained their rates and others to you for comparison. Our broker will do that and then ask if they want them to do it for me or do I. I often let them as it’s no skin off my nose but once I just did it myself.

This was absolutely my first thought - home owner clicking a few buttons on the website of the bank they are currently mortgaged with = no commission for mortgage advisor.

Mortgage advisors are great for people with problems - complex self employment, non-traditional income streams, past CCJs, recent job change, recent divorce with minimum credit history just off the top of my head.

For Joe and Claire Smith - two employed incomes, joint tenants of the house, no tricky issues to take into account, the MSE website is enough and will save them the amount the advisor would have charged.

I’m with Santander - you log into your mortgage account a few months before the term ends and there will be a list of applicable deals you can choose from. Select on line and then a confirmation letter is sent. No conversations or checks.

For my last remortgage, my broker found me a better deal that was coincidentally with the same lender, but was not visible to me on their site or any offers they sent. So it is worth checking to be sure.

(Mine was back in the glory days of 1-2% interest rates, so the financial impact of checking would be much more significant now)

So much easier to stay put

Thank you so much everyone, you have made me so much more at ease about the process! By the sound of it this will be the right path for us.

We have always had our mortgage with Santander- super easy to set up a new deal and rates have always been very competitive