We're in the process of looking for a deal for a remortgage and the best on offer (all things considered including access to the 123 current account) is the following product on offer from Santander (from their website):-
Product: 2 year fix @ 2.44%
Booking Fee: £995
LTV: 70% max
Additional Benefits:- Free valuation and standard legal fees paid.
Doing the same search on Money Supermarket brings up the same product, with slightly different wording for the "Additional Benefits", as follows:- "Cashback: £250 paid to you on completion".
We're with RBS at the moment and our current deal expires on 30/4/13. We have just over £175k principal outstanding on a £250k valued property.
We've got the 90 minute mortgage appointment booked for over the telephone on Friday.
Quite a few queries:-
A. When we called Santander direct to enquire about the mortgage, they mentioned we had two options re the "Additional Benefits":-
1. A free valuation and standard legal fees paid but no cashback; or
2. A free valuation and £250 cashback but we would have to pay the legal fees.
Which of these two is the best option both in terms of outright cost and potential risks?
B. There is a chance we could get a c. £5-10k windfall between now and the point where the mortgage would be ported across to Santander. At what point in the process between now and 30/4/13 will the lending amount be locked down? i.e. could we agree with Santander a maximum lending limit of £175k on the basis that we could port either that across or a lower amount if need be (i.e. £170k/£165k)? Or do we need to agree the lending amount outright i.e. if we agree £175k it has to be £175k?
C. The principal outstanding on the mortgage is just over the 70% LTV ratio at the moment; however we have two further loan repayments with RBS prior to 30/4/13 therefore we'll be just under the 70% LTV ratio (I calculate we'll be at c. £174,800 on 30/4/13). However, adding the booking fee of £995 to the mortgage would then take us back over the £175k to c. £175,995.
How do lenders (and Santander in particular) calculate the LTV % in terms of eligibility for certain products - is it pre, or post, addition of the Booking Fee? Of course all of this assumes our house will remain valued @ £250k.
D. As our existing mortgage product runs to 30/4/13 and we'd have to pay an ERC if we switched to another lender prior to this, at what point in the process can we give Santander the go-ahead to port us across without incurring an ERC? i.e. what is Santander's turnaround time assuming we pass the credit checks etc.
Product: 2 year fix @ 2.44%
Booking Fee: £995
LTV: 70% max
Additional Benefits:- Free valuation and standard legal fees paid.
Doing the same search on Money Supermarket brings up the same product, with slightly different wording for the "Additional Benefits", as follows:- "Cashback: £250 paid to you on completion".
We're with RBS at the moment and our current deal expires on 30/4/13. We have just over £175k principal outstanding on a £250k valued property.
We've got the 90 minute mortgage appointment booked for over the telephone on Friday.
Quite a few queries:-
A. When we called Santander direct to enquire about the mortgage, they mentioned we had two options re the "Additional Benefits":-
1. A free valuation and standard legal fees paid but no cashback; or
2. A free valuation and £250 cashback but we would have to pay the legal fees.
Which of these two is the best option both in terms of outright cost and potential risks?
B. There is a chance we could get a c. £5-10k windfall between now and the point where the mortgage would be ported across to Santander. At what point in the process between now and 30/4/13 will the lending amount be locked down? i.e. could we agree with Santander a maximum lending limit of £175k on the basis that we could port either that across or a lower amount if need be (i.e. £170k/£165k)? Or do we need to agree the lending amount outright i.e. if we agree £175k it has to be £175k?
C. The principal outstanding on the mortgage is just over the 70% LTV ratio at the moment; however we have two further loan repayments with RBS prior to 30/4/13 therefore we'll be just under the 70% LTV ratio (I calculate we'll be at c. £174,800 on 30/4/13). However, adding the booking fee of £995 to the mortgage would then take us back over the £175k to c. £175,995.
How do lenders (and Santander in particular) calculate the LTV % in terms of eligibility for certain products - is it pre, or post, addition of the Booking Fee? Of course all of this assumes our house will remain valued @ £250k.
D. As our existing mortgage product runs to 30/4/13 and we'd have to pay an ERC if we switched to another lender prior to this, at what point in the process can we give Santander the go-ahead to port us across without incurring an ERC? i.e. what is Santander's turnaround time assuming we pass the credit checks etc.