How Do You Remortgage Nationwide

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Remortgaging can feel like a daunting process, but it's a fantastic opportunity to potentially save money, borrow more for home improvements, or simply gain greater financial flexibility. If you're currently with Nationwide or considering switching to them, this comprehensive guide will walk you through every step.

How Do You Remortgage Nationwide? A Complete Step-by-Step Guide

Are you ready to explore your options and potentially unlock significant savings?

Let's dive into the world of Nationwide remortgaging!

Step 1: Evaluate Your Current Situation and Goals

Before you even think about new rates, it's crucial to understand your current mortgage and what you hope to achieve with a remortgage. This initial assessment is key to making informed decisions.

Sub-heading: Why are you remortgaging?

Saving Money: Is your current fixed or tracker rate coming to an end? You'll likely revert to your lender's Standard Variable Rate (SVR), which is often significantly higher. Remortgaging allows you to secure a new, more competitive deal.
Borrowing More: Do you need funds for home improvements, debt consolidation, or another significant expense? Remortgaging can allow you to release equity from your home. Be cautious with debt consolidation, as you're securing unsecured debt against your home, putting it at risk.
Changing Mortgage Type: Perhaps you're on a variable rate and want the stability of a fixed rate, or vice-versa.
Better Terms: You might be looking for a mortgage with more flexible overpayment options or a shorter term.

Sub-heading: Check Your Current Mortgage Details

When does your current deal end? This is perhaps the most critical piece of information. You can typically start looking for a new deal up to six months before your current one expires without incurring early repayment charges (ERCs). Nationwide allows you to secure a new rate up to 5 months before your current rate ends, and your new rate can go live up to 3 months before, without ERCs.
What is your current outstanding balance?
What are your current interest rate and monthly payments?
Do you have any Early Repayment Charges (ERCs)? These are fees charged by your current lender if you switch deals before your existing one expires. They can be substantial (often a percentage of the amount being repaid) and might outweigh any potential savings from a new deal. Always check your latest mortgage offer or annual statement for details on ERCs. Nationwide's ERCs can range from 0-7% of the amount repaid, depending on the product and how far into the term you are.

Step 2: Research Nationwide's Remortgage Deals (and others!)

Once you know your goals, it's time to explore the market. While this guide focuses on Nationwide, it's always advisable to compare offers from various lenders to ensure you're getting the best deal for your circumstances.

Sub-heading: Understanding Nationwide's Offerings

Nationwide offers a range of remortgage products, including fixed-rate and tracker mortgages, with varying Loan-to-Value (LTV) options. They often have specific deals for existing customers (known as "switcher" rates) which can be very competitive.

Fixed-Rate Mortgages: Your interest rate and monthly payments remain the same for a set period (e.g., 2, 3, 5, or 10 years), providing stability.
Tracker Mortgages: Your interest rate is linked to the Bank of England Base Rate, meaning your payments can go up or down.
Loan-to-Value (LTV): This is the percentage of your home's value that you're borrowing. For example, if your home is worth £200,000 and you want to borrow £150,000, your LTV is 75%. Generally, the lower your LTV, the better the interest rates available. Nationwide offers remortgages up to 95% LTV if you're not borrowing more, and up to 90% LTV if you are.

Sub-heading: Where to find deals:

Nationwide Website: Their dedicated remortgage section provides current rates and allows you to find out how much you could borrow.
Mortgage Advisers: Nationwide offers free meetings with their mortgage advisers over the phone or via video call. They can assess your needs and recommend suitable products.
Independent Mortgage Brokers: Crucially, a mortgage broker can compare deals from a wide range of lenders, including Nationwide, to find the most suitable and cost-effective option for you. They can save you time and potentially money by navigating the complex market. Many offer fee-free services.

Step 3: Check Your Eligibility and Affordability

Lenders, including Nationwide, will rigorously assess your financial situation to ensure you can afford the new mortgage.

Sub-heading: Key Eligibility Criteria

Income and Employment: Lenders will need to see proof of your income (payslips, SA302s for self-employed, etc.) to assess your affordability. Nationwide has recently relaxed its affordability rules, potentially allowing you to borrow more.
Credit History: A good credit score is vital. Lenders will check your credit report to see your repayment history and existing credit commitments.
Existing Debts: Your current loans, credit cards, and other financial commitments will be factored into affordability calculations.
Property Type: Some properties may have specific lending restrictions. Nationwide does not remortgage properties that are let out (for those, you'd look at The Mortgage Works, their specialist buy-to-let lender).
Age: You typically need to be 18 or over.

Sub-heading: Get an Agreement in Principle (AIP)

An AIP (sometimes called a Decision in Principle or DIP) is an initial indication from Nationwide of how much they might be willing to lend you. It's not a formal offer but is based on a soft credit check and the information you provide. This can be a useful step to confirm your borrowing power before a full application.

Step 4: Gather Your Documents

Remortgaging involves a fair amount of paperwork. Having your documents ready will significantly speed up the process.

Sub-heading: Essential Documents You'll Need

Proof of Identity and Address: Valid passport or driving licence, recent utility bills, council tax statements.
Proof of Income:
- Employed: Your most recent 3 months' payslips and your P60.
- Self-Employed (Sole Trader/Partnership): Two years' SA302s and Tax Overviews. Sometimes, audited accounts or an accountant's certificate may be required.
Bank Statements: Recent bank statements (often 3-6 months) to show income, outgoings, and existing credit commitments.
Current Mortgage Statement: This will detail your outstanding balance, current rate, and any potential Early Repayment Charges.
Details of Outgoings: Information on credit cards, personal loans, car finance, and any dependants' costs (e.g., school fees).
Address History: Going back at least three years.

Step 5: Submit Your Full Remortgage Application

This is where you formally apply for the Nationwide remortgage product you've chosen.

Sub-heading: Application Process

You can apply directly with Nationwide by calling them to book a meeting with a mortgage adviser, or if you've already started online, you can continue a saved application.
If you're using a mortgage broker, they will guide you through the application and submit it on your behalf. This can streamline the process significantly.

Step 6: Valuation and Underwriting

Once your application is submitted, Nationwide will begin their assessment.

Sub-heading: Property Valuation

Nationwide will arrange a valuation of your property to confirm its value. This is to ensure the loan-to-value (LTV) is accurate and the property provides sufficient security for the mortgage.
Good news! Nationwide typically covers the cost of a standard mortgage valuation for remortgages.
The valuation may involve a physical inspection, or it could be a desktop or automated valuation, depending on the circumstances.
Important Note: This valuation is for Nationwide's benefit, not a full structural survey for your own peace of mind. You may wish to commission a separate Home Survey (Level 2 or 3) if you want a more detailed report on the property's condition.

Sub-heading: Underwriting

During underwriting, Nationwide's team will thoroughly review your application and all supporting documents. They will verify your income, outgoings, credit history, and overall financial stability.
This process can take anywhere from 5 to 10 days, sometimes longer if additional information is required.

Step 7: Legal Work (Conveyancing)

When remortgaging to a new lender, legal work is required to transfer the mortgage deed.

Sub-heading: Choosing Your Solicitor

Nationwide offers an incentive: you can often choose between £500 cashback or free standard legal fees for a straightforward remortgage of registered land.
If you opt for the free legal service, Nationwide will instruct a solicitor from their panel.
Alternatively, you can use your own solicitor. If you do, you'll be responsible for their fees, though you might receive cashback from Nationwide to contribute towards these.

Sub-heading: What the Solicitor Does

The solicitor will handle the legal transfer of the charge over your property from your old lender to Nationwide.
They will request a redemption statement from your current lender (detailing the exact amount needed to pay off your old mortgage).
They'll conduct necessary searches (though these are generally less extensive than for a property purchase).
They will prepare all the legal documents for your signature.

Step 8: Mortgage Offer and Completion

This is the final stretch!

Sub-heading: Receiving Your Mortgage Offer

Once Nationwide is satisfied with the valuation and underwriting, they will issue a formal mortgage offer.
Carefully review this offer document. It will detail your loan amount, interest rate, term, monthly payments, any fees (including product fees, which can sometimes be added to the loan), and any specific conditions.

Sub-heading: Completion

Your solicitor will set a completion date. On this date, Nationwide will transfer the mortgage funds to your solicitor.
Your solicitor will then use these funds to pay off your old mortgage with your previous lender.
Any surplus funds (if you borrowed more) will be transferred to your bank account.
Your new Nationwide mortgage will officially begin, and your first payment will be due as per your offer.

Step 9: Post-Completion & Monitoring

Even after completion, there are a few things to keep in mind.

Sub-heading: Set Up New Payments

Ensure your direct debit for your new Nationwide mortgage is set up correctly for the agreed monthly payment.

Sub-heading: Monitor Your Mortgage

Keep an eye on interest rates and market conditions. As your new fixed or tracker rate period approaches its end, repeat this process to ensure you're always on the best possible deal. Nationwide will typically contact you in advance to let you know your options.