Getting a new mortgage deal with current lender

[Hillse]

Can anyone shed any light on the process and timings of getting a new deal with our mortgage company - I have looked on the wbesite but am still none the wiser

We are with the Halifax and our mortgage fix comes to an end at the end of October 2021. We will probably stick with the Halifax as it easier in terms of hassle - I have had a look at remortgaging websites but its only a marginal saving once the product costs and surveys etc are taken into account (plus I dont want to have to print out bank statements/find payslips etc if I dont have to).

So in terms of getting a new deal the website says we can do so in the last 3 months of the current one. Does this mean that on 1 August we can arrange a deal and it will take effect immediately with reduced daily interest and first new payment on 1 Sept or does it mean that we will transfer to the new deal at the end of October (first payment 1 Nov)?

And now the big question - 2 year fix or 5 year? Five year marginally more expensive on monthly basis but will interest rates have gone up by 2023? It seems nobody knows but I would welcome speculation!

I would call them up. It's usually very straightforward. They will do another assessment of your finances a couple of months before (you will probably have to provide most recent payslips and bank statements but we did this electronically). I enquired in November, got a call back in December, the new product started end of February. We usually go for a 2 or 3 year fix, as it's cheaper and I don't see the interest rates changing massively any time soon. It also gives you more flexibility if for any reason you decide to move, but then you can also port your morgage...

Your new product will start when your existing one ends. It won’t start before.

Different lender but I imagine the process will be similar. My deal was up on 1st April. I was able to start viewing their new deals for existing customers 3 months before at the start of January but the small print said I would still incur early repayment charges on the old deal if I tried to get things sorted earlier than 90 days before the deal end. So I waited till mid February and it was very easy - I simply picked the new deal, there was one single form to sign and it was done

Ive just done this with Nationwide, it was very hasslefree, no additional costs and they actually started the new term 3 months early. Interest rate dropped from 3.94% to 1.7% as LTV had decreased. They did another valuation and affordability calculator. Very easy

We are with TSB, waited until we were in the last 3 months of our mortgage deal, applied online which took all of 15 minutes. New deal started on 1st of the following month (so before current deal end). We went for 5yr fixed.

@addictedtotheflats - did your valuation include an actual visit or was it an online/desktop valuation?

I would get an independent mortgage advisor and start 3 mths before the deal ends. They'll be able to check all lenders. I've moved my mortgage about 3 times now and never had a problem. They've got me the best deal for me and I'll be doing it again.

Halifax experience. I only did it right at the end or possibly after expired and on standard variable.
Took about 10 mins online, didn’t have to provide any updated paperwork.

@SecretOfChange I think online, they didn't mention anyone coming round to the house and they certainly didnt come inside. I guess they used sold prices of similar houses in the area

So in terms of getting a new deal the website says we can do so in the last 3 months of the current one. Does this mean that on 1 August we can arrange a deal and it will take effect immediately with reduced daily interest and first new payment on 1 Sept

Yes, I've just done this with my mortgage supplier

I would get an independent mortgage advisor I was skeptical at first on using one but my own mortgage company told me it would take 6-12 weeks to process the mortgage advisor did it with my own bank in less than 2 weeks. The commission he earns was from the bank I didn’t pay anything.

Took me 10 mins on the phone to my mortgage company

@Xyzzzzz

Your new product will start when your existing one ends. It won’t start before.

it might do, i had the choice with nationwide to start when i choose (april) rather than June when my existing deal expired

Returning to my earlier query about remortgaging I have found it very easy to do.

Today when I logged on to the Halifax website I thought I would look at the remortgaging options. I was offered a new deal, over £100 a month cheaper, l which will start on 1 August. After five minutes of agreeing to things online, reading terms and conditions etc we are all set.

We could have saved a small amount by going for another provider but decided to stick with Halifax because of the ease of transfer to a new deal - laziness wins in the end!

We have gone for a 2 year fix as I dont think interest rates will rise significantly over the medium term given the state of the economy, brexit etc