First time mortgage

18
Found 28th Jun
Hi everyone.

In about 6 months time my 5 year fixed mortgage is about to increase to a rather large interest rate as I am already 4 and a half years through it.

I'm having a look online at some possible new mortgages (obviously it's a bit too early now, just preparing) but I'm not sure am I a first time buyer or a remortgager?

This is my first property and this 5 year fixed mortgage is marked as a first time buyer. But I was told by a work colleague who was once in this industry that once I change my mortgage I'm a remortgager. But I just don't think that sounds right.

Can anyone clarify?
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AskMortgage
18 Comments
You're already got a mortgage so definitely not a first time buyer...

Also can't see how your rate will increase that much as the rates are lower than they were 5 years ago...
You’re definitely a re-mortgager.
Interest rates may look higher as you probably got a good fixed rate deal as a first time buyer 4 and a half years ago.
as @Bigfootpete notes, interest rates are lower than they were 5 years ago, so you might be able (with some hard searching)to find another fixed deal out there comparable to your current deal.
As above but to clarify your rate at the moment is 5 years old rates were good then and still are now, but you will move from your fixed rate to the bank or building societies standard variable rate SVR, which I am guessing is much higher than the one you are on.

So you have an option stay on the SVR, plenty do this but you have to be mad to do so, or change to another product it can be with any bank or building society it does not have to be the one you are with.

You said “it’s a bit early” it’s not, you want to make sure your new rate starts when your old finishes, many companies will let you lock in now to a rate in the future ask. Also the process takes time, haven’t done it for a while as we are on such a good tracker we would be daft to change so can’t give timings but... you need to do legal, get valuations and the process isn’t done in days.

Look for for the best overall package not just the headline rate, you might find a low rate with high fees, higher rate with less fees and free legal and valuation work it out over the term of the offer
Ok. Thank you guys for your responses. Would anyone be able to give recommendations on what the best comparison sites are for mortgages. Like you said eslick I need to find the best overall deal not just the lowest rate.
You need to bear in mind that the equity in your house will hopefully have increased in the last 5 years, so your LTV will be lower. I came to remortgage last year and my house value had increased by £45k and my LTV had dropped to below 60% opening up some far better interest rates.
Saved myself over £150 a month on new deal. As said above definitely not too early to be looking at deals, I started looking about 10 months before deal end to get an idea of the market
How does it work if you stay with your current lender? Could I find a better deal with them? Would they need to charge for fees again if they already done it in the past?
Yes you'll have to pay product fees again if you chose a new product, even with existing lender. These can be added to the loan amount though so you don't need to pay upfront.

You should probably talk to a broker such as landc.co.uk

They will help you find the best deal for your circumstances, you can then look online and try and beat it yourself if you wish but a broker will also help you with the process and the paperwork.
what is your current rate and how much equity do you have?.
Firstly, you need to know your LTV. This will give u an idea of what interest rates are on the market.
I am in the process of remortgaging. Check all the rates on Moneysavingexpert or moneysupermarket. I tried l&c, but they lied to me and i cancelled their service. I went straight to bank after i found the deal that suited me.
Beware of headline rates, cashbacks, legal charges, product fee, booking fee etc. I have found that quite a lot of lenders will offer free legal but other will charge. You need to read through whole product description to find this. If you found a deal that suits you, there is no harm in applying yourself straight with that bank or building society. Goodluck with your search. Any questions, just ask.
cornishjones1 h, 20 m ago

How does it work if you stay with your current lender? Could I find a …How does it work if you stay with your current lender? Could I find a better deal with them? Would they need to charge for fees again if they already done it in the past?


Speak to an INDEPENDENT financial advisor! They will tell you pretty much what you should know your LTV loan to value ratio! Use Nationwide free calculator tool there pretty much up there for best fees most of the time so there a good yardstick. Then seek advice we used that method and mortgage dropped £355! Most people think also staying on a unfixed deal is saving them money but if they went and re fixed most would be surprised at how much more they could save! NOW is the time to fix !
Staying with your current lender means you shouldn’t have to undergo any affordability checks, whereas moving to a new lender might well mean you have to do these again. Not a huge hassle if it’s saving you a load, but worth considering.
It would be easier to stay with your current mortgage provider, and you could probably sign up to a new mortgage deal online with them. Most lenders offer 2similar rates on fixed deals the only difference being pay the fee upfront or add to the loan but overall the cost works out roughly the same.
Personally I would look to remortgage with the same lender with a 5 yr fixed deal with fees added to the loan.
If you do decide to go with another lender, go through an independent mortgage adviser, make sure their fees are paid by the mortgage provider rather than yourself.
Staying with your existing lender is usually quicker and easier. for example i switched my rate with nationwide online in about 2 minutes.

However; you may be able to get cheaper rates my moving your mortgage to another company. This can take several months (usually less) as it does require solicitors to release the old banks charge and register it to the new bank and usually require the property to be re valued. I know most banks used to offer free solicitors and survey costs for you to move to them - but i dont know if this is still the case i'm afraid.
ASongOfFireAndIce16 h, 57 m ago

Speak to an INDEPENDENT financial advisor! They will tell you pretty much …Speak to an INDEPENDENT financial advisor! They will tell you pretty much what you should know your LTV loan to value ratio! Use Nationwide free calculator tool there pretty much up there for best fees most of the time so there a good yardstick. Then seek advice we used that method and mortgage dropped £355! Most people think also staying on a unfixed deal is saving them money but if they went and re fixed most would be surprised at how much more they could save! NOW is the time to fix !



Most people can do it themselves without paying one way or another for a financial advisor, yes they may have access to some specials but with the tinternet thats not always the case. The market is so open now, its difficult to hide rates like it used to be.

Anyone who think staying with an unfixed deal really needs to start learning more about the the world of finance because they are probably paying more for everything if they think thats the case.
Toptrumpet5 h, 32 m ago

It would be easier to stay with your current mortgage provider, and you …It would be easier to stay with your current mortgage provider, and you could probably sign up to a new mortgage deal online with them. Most lenders offer 2similar rates on fixed deals the only difference being pay the fee upfront or add to the loan but overall the cost works out roughly the same.Personally I would look to remortgage with the same lender with a 5 yr fixed deal with fees added to the loan. If you do decide to go with another lender, go through an independent mortgage adviser, make sure their fees are paid by the mortgage provider rather than yourself.


why would you say stay with the same lender and add fees to the loan, that lender may be charging making it up 4% fixed with £1000 fees, someone else could be 2% with £1000 fees, can be added to the loan and free legal and valuation . Sticking would make no sense at all, you need to consider the whole market not just what your current provider offers. You could over term be paying thousands more than with the cheapest provider, add that to every term you fix and the amount would be massive.
@eslick whilst I agree with your comment that most people can sort new deals out for themselves, many out there are not financially savvy, in @cornishjones case he’s unsure if he is a first time buyer or a re-mortgager let alone understanding the complexities of all the other deals out there. In their case I would urge them to use an advisor as the wrong choice may end up costing a lot more than using a service that the lender will pay for as a kick back for taking out their product.
Just read your last comment, and again I agree with looking at the whole market, but if there was an alternative great deal on par with the current lender then I would stick with them rather than move elsewhere.
Toptrumpet5 m ago

@eslick whilst I agree with your comment that most people can sort new …@eslick whilst I agree with your comment that most people can sort new deals out for themselves, many out there are not financially savvy, in @cornishjones case he’s unsure if he is a first time buyer or a re-mortgager let alone understanding the complexities of all the other deals out there. In their case I would urge them to use an advisor as the wrong choice may end up costing a lot more than using a service that the lender will pay for as a kick back for taking out their product.



Toptrumpet2 m ago

Just read your last comment, and again I agree with looking at the whole …Just read your last comment, and again I agree with looking at the whole market, but if there was an alternative great deal on par with the current lender then I would stick with them rather than move elsewhere.



true but they are learning which is good
Edited by: "eslick" 29th Jun
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