Noob question about remortgage

[Okigen]

Hi all, this is my first time remortgaging so I'm totally noob. If I fix a new deal with my existing lender - will they do a new valuation and a new credit/affordability check? The main reason is I'm concerned my flat will be downvalued.

Also, normally will it be possible to cancel a deal before it's due to start? As I'm thinking of fixing a deal now but will switch to a better one if the situation improves in the future.

Normally a desk valuation. I wouldn't worry too much.

If you remortgage with an existing lender they don't do a new valuation or affordability checks. If you move to a different lender they will.

As above, if you stick with the same lender they won't bother with a valuation or affordability checks.

If you are currently on a fixed rate deal, they normally write to you about 6 months before it is due to end to offer you a new fixed rate deal. If you don't accept it and don't change lender you will automatically revert to their standard variable rate (SVR).

Is that at end of term changes or earlier?

I'm starting to think we have an uptight lender.

It depends if you want to raise any more money when you remortgage - if you do, even your existing lender will want a new valuation and will run affordability checks, as would a new one.

If its simply a matter of a product transfer with your current lender, they'll just do a desk valuation as somebody said, not really a big deal.

But once you have committed to a new product - if it is a fixed rate for a certain period - you are usually tied in for that period, you don't get to just switch to a new one before it ends. Well, you could but there would be an early redemption penalty, in most cases. Discounted variable rates usually have lower redemption penalties.

I would contact an independent broker like London and Country and see what deal they can find you? They will do affordability checks but you might pass and a better deal will save you money.

you can always look online now and keep an eye on the fixed rates offered by your current provider to see how they compare. Your existing provider will likely not redo affordability checks

The problem with moving to a new lender is stress testing up to 10 percent. My son has just bought his first home. He got his mortgage 5 months ago. At the time he had to stress test to 8 percent. His friend is just starting to make an application now and has been told he will have to stress test to 10 percent which is crazy.

If you stick with your current lender, and aren’t wanting to borrow any extra money, then no financial checks/valuation/etc.

Usualky, you can secure a new rate from 5 or 6 months before your current fix comes to an end. That new rate will kick-in at the end of your current term. However, if rates drop before your new rate starts then you can usually cancel it and reapply- you should allow at least 10 days before current deal ends to make a last minute change. I was lucky and managed to do this recently. Do check terms/timings with your provider though.

Once your new rate starts, you can’t swap again until the end of the term you’ve fixed for. Well, you could, but you will need to pay an Early Repayment Charge, which will be calculated depending how far into the term of your fix you are.

I think the OP has a few weeks/months till their current fix expires. We started our product switch 4 months before current fix expired. We then at least had a product booked but we kept an eye on the rates in case our bank dropped them before the 4 months ended then we would have been able to cancel previous switch and apply for the new lower rate. I think we could do this up to about a week before completion to allow for paperwork to sent and signed by us.

you can do a product transfer with your existing lender if the deal they are offering is good - it's not remortgaging. We did this last year and it was a simple online form, no checks or anything.

I remortgaged earlier this year. No affordability check and they went with the valuation from last time.

Yes I believe most banks you can cancel the a deal to apply for one with a lower rate if you haven't completed yet. Our bank even said this us; to check regularly right up until completion in case rates fall, then we can apply for the lower rate and cancel the higher one. But tis was because we started the process a good 4 months earlier.

Many thanks everyone for clarification. In that case I'll fix a deal now and switch later before my current fix ends if there is a better one😅