Getting a Remortgage Quote with own Lender

Currently I am on Standard Life’s Standard Variable Rate of 6.75% paying £878 per month. The mortgage balance is about 137,000 and is for a term of 32 years.

I have been with the standard life for nearly 3 years. Originally the mortgage was a self-certification mortgage. At the moment I thought it would be hard to re mortgage because my income is too low for conventional mortgage deals.

Despite writing frequently about the benefits of Re mortgaging on this mortgage sites I never got round to doing it myself. – Sometimes it is easier to give advice than it is to follow it!
Anyway today I rang up standard life and asked about Re mortgaging. They offered a couple of deals.

1 Year Discount Re mortgage

  • 1st year 1.85% discount off SVR
  • 2nd Year 0 discount

This deal is tied for 2 years and has no costs of setting up. It means in effect there is an average discount of 0.925% over the two years. In the first year I would save £157 per month. Therefore total savings – 12 * £157 = £1884. This is an average saving of £942 per year.

3 year Discount Re mortgage

For each year there is a discount off SVR of 1.46%. This means that on current interest rates my mortgage interest payments would fall from £878 to £753.73.

This is a monthly saving of £125 but is for 36 months. Therefore total savings over 3 years is £4,101. However for this deal there is an administration cost of £399. Therefore total savings = £3,702. This is an average of £1,234 per year

After the time periods the mortgage reverts back to the SVR, but you are then free to change mortgage again.

The best thing about this deal is that as an existing customer I don’t need to prove any income – you automatically qualify.

Now why didn’t I do this a couple of years ago?

Top Tips for Remortgaging:

  • Remortgaging is the easiest way to save lots of money.
  • It is Always worth starting off with your existing mortgage dealer. This can be a good way to save on mortgage fees.