Feeling a bit overwhelmed by your current mortgage deal, or simply wondering if there's a better option out there? You're not alone! Many homeowners in the UK reach a point where they consider remortgaging. If Nationwide is on your radar, or even if you're already a Nationwide customer looking to switch deals, this comprehensive guide is exactly what you need.
Let's dive in and explore the process of how to remortgage with Nationwide, step-by-step, to help you make informed decisions and potentially save a significant amount of money.
The Nationwide Remortgage Journey: A Step-by-Step Guide
Remortgaging is essentially switching your current mortgage to a new deal, either with your existing lender (like Nationwide) or a new one. It's a fantastic opportunity to re-evaluate your financial situation and ensure your mortgage is still working optimally for you.
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| How To Remortgage Nationwide |
Step 1: Are You Ready to Remortgage? Let's Find Out!
Before you even think about forms or appointments, the very first question to ask yourself is: Is remortgaging the right move for me right now?
- When does your current mortgage deal end? Most fixed-rate or tracker deals come with early repayment charges (ERCs) if you switch before the term is up. You typically want to start looking about 3-6 months before your current deal expires to avoid these charges and ensure a smooth transition. Nationwide, for instance, often allows you to secure a new rate up to 6 months in advance.
- Why do you want to remortgage? Are you looking for a lower interest rate to reduce your monthly payments? Do you want to release equity from your home for renovations or debt consolidation? Or perhaps you're simply looking for more payment flexibility? Understanding your motivation will help you choose the right product.
- Has your financial situation changed? Lenders will assess your affordability. Have your income, outgoings, or credit score improved (or worsened) since you took out your current mortgage? Nationwide, like other lenders, will look at your financial health.
- What about your property value? Has your home's value increased? This could mean a lower Loan-to-Value (LTV) ratio, potentially opening up more competitive rates.
Take a moment to reflect on these questions. Be honest with yourself about your financial goals and current circumstances.
Tip: Each paragraph has one main idea — find it.
Step 2: Researching Your Options - Nationwide and Beyond
Once you've confirmed that remortgaging aligns with your goals, it's time to explore the market.
2.1: Nationwide's Product Transfer (for Existing Customers)
If you're already a Nationwide mortgage holder, your first port of call might be their "product transfer" options. This is often the simplest and quickest route as you stay with your existing lender.
- What it is: A product transfer means you switch to a new mortgage deal with Nationwide but don't move your mortgage to a different lender.
- Advantages: It typically involves less paperwork, no solicitor fees (as the legal title doesn't change hands), and often no new valuation fee. You might also avoid stringent affordability checks if you're not borrowing more.
- How to check: You can often view available product transfer deals via Nationwide's Mortgage Manager tool in their online banking or app, or by calling their mortgage advisors. Nationwide is known for offering competitive rates to existing customers, sometimes even matching or beating remortgage rates for new customers.
2.2: Remortgaging to Nationwide (for New Customers or if Switching Lender)
If you're with another lender and considering moving your mortgage to Nationwide, or if you're an existing Nationwide customer who wants to explore the wider market first (which is always a good idea!), then you're looking at a full remortgage.
- Compare Rates: Don't just jump at the first offer! Use online comparison sites or, better yet, consult with a mortgage broker. They have access to a wider range of deals, including those not directly advertised, and can provide impartial advice tailored to your situation.
- Nationwide's Current Offerings: Keep an eye on Nationwide's media centre and website for their latest remortgage rates. They often adjust rates based on the market and offer various fixed and tracker products. Consider factors like:
- Interest Rate: This is the headline figure, but it's not the only one.
- Product Fee: Some deals have a fee (which can often be added to the loan, but you'll pay interest on it), while others are fee-free but might have a slightly higher interest rate.
- Early Repayment Charges (ERCs): Understand what these are if you're leaving your current lender.
- Incentives: Nationwide sometimes offers incentives like free valuation or free legal services for remortgages, which can significantly reduce your upfront costs.
Step 3: Getting Your Ducks in a Row – Documentation is Key!
Lenders need a clear picture of your financial standing. Being prepared with the right documents will streamline the application process significantly.
QuickTip: Scan quickly, then go deeper where needed.
Here's a general list of what Nationwide (and most lenders) will typically require:
3.1: Personal Identification & Proof of Address
- Valid Photo ID: Passport or UK Driving License.
- Proof of Address: Recent utility bills (gas, electricity, water, or broadband), council tax statement, or bank statements (usually within the last 3 months).
3.2: Income Verification
- For Employed Applicants:
- Your last 3 months' payslips.
- Your most recent P60.
- Proof of any bonuses or commission.
- For Self-Employed Applicants / Sole Traders / Partnerships:
- Your last 2 years' SA302s and Tax Overviews from HMRC.
- Sometimes, your lender may ask for accountant certificates or full audited accounts.
- Other Income: Details of any other income, such as benefits, pension, or rental income.
3.3: Existing Mortgage Information
- Your latest mortgage statement from your current lender. This will show your outstanding balance, current interest rate, and any potential Early Repayment Charges (ERCs).
3.4: Outgoings and Debts
- Bank Statements: Typically the last 3-6 months' statements from your main current account(s). These help the lender understand your spending habits and identify regular outgoings.
- Details of other debts: This includes personal loans, car finance, credit cards, student loans, and any other significant financial commitments. Provide statements or agreements for these.
Step 4: Application Time – Agreement in Principle (AIP) to Full Application
This is where the rubber meets the road!
4.1: Agreement in Principle (AIP) / Decision in Principle (DIP)
- This is an initial assessment by Nationwide (or your chosen lender) of how much they might be willing to lend you. It involves a "soft" credit check, which won't impact your credit score.
- You can often get an AIP online or by speaking to a mortgage advisor. It's a great way to understand your borrowing capacity before committing to a full application.
4.2: Full Mortgage Application
- Once you're happy with a Nationwide product and have your AIP, you'll proceed with the full application. This will involve providing all the documents you gathered in Step 3.
- Important Note on Advice: You can apply directly with Nationwide if you're comfortable choosing a deal without advice, or you can opt for an appointment with one of their mortgage advisors (or use an independent broker). Seeking advice is highly recommended as it ensures the product is suitable for your specific circumstances. Nationwide offers appointments in branch, over the phone, or via video call.
Step 5: Valuation and Underwriting – The Lender's Due Diligence
After your application is submitted, Nationwide will begin their assessment.
5.1: Property Valuation
- Nationwide will arrange a valuation of your property to ensure it's worth the amount you're borrowing. For remortgages, this is often a free service from Nationwide.
- The valuation might be a physical visit by an assessor, or in some cases, a desktop or automated valuation.
5.2: Underwriting
- This is the detailed assessment of your application by Nationwide's underwriters. They will scrutinize your income, outgoings, credit history, and the property valuation to ensure everything meets their lending criteria.
- This stage can take anywhere from a few days to a couple of weeks, depending on the complexity of your application and current demand. Be prepared to answer further questions or provide additional documents if requested.
Step 6: Legal Work (Conveyancing) – The Transfer of Title
If your remortgage involves switching to a new lender (i.e., not a Nationwide product transfer), legal work is required.
Tip: Train your eye to catch repeated ideas.
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- Solicitors: You'll need to instruct a solicitor (also known as a conveyancer) to handle the legal transfer of the mortgage from your old lender to Nationwide.
- Nationwide's Free Legal Service / Cashback: Nationwide often offers either free legal services (they appoint a solicitor from their panel) or a cashback incentive if you choose your own solicitor. Carefully weigh up which option is best for you. While free legal services can save you money, using your own solicitor might offer more control and a potentially quicker process.
- What solicitors do:
- They handle all the legal paperwork to repay your old mortgage.
- They register Nationwide's new charge on your property with the Land Registry.
- They ensure all conditions of the new mortgage offer are met.
- They manage the transfer of funds.
Step 7: Mortgage Offer and Completion – The Final Stretch!
7.1: Mortgage Offer
- Once Nationwide is satisfied with all checks (affordability, valuation, legal), they will issue a formal mortgage offer. This document outlines the full terms and conditions of your new mortgage.
- Review carefully: Read this offer thoroughly and ensure all details are correct. If you used a broker, they will also review this with you.
7.2: Completion
- On the agreed completion date, your solicitor will arrange for the funds from your new Nationwide mortgage to be transferred to your old lender, repaying your previous mortgage.
- Your new Nationwide mortgage officially begins! Any surplus funds (if you released equity) will be sent to you.
- Congratulations, you've remortgaged!
Key Considerations and Tips for Remortgaging with Nationwide
- Start Early: As mentioned, beginning the process 3-6 months before your current deal ends is ideal.
- Don't Just Look at the Rate: Factor in product fees, ERCs (if applicable), and any incentives when comparing deals. The cheapest rate might not always be the cheapest overall.
- Consider a Mortgage Broker: While you can go directly to Nationwide, an independent mortgage broker can be invaluable. They can compare Nationwide's deals with the entire market, offer tailored advice, and handle much of the paperwork for you, potentially saving you time and money.
- Improve Your Credit Score: A good credit score can unlock better rates. Before applying, check your credit report for any errors and take steps to improve it if needed.
- Affordability Changes: Nationwide has recently relaxed some affordability rules, which could mean increased borrowing capacity for some remortgaging customers, particularly those not seeking additional borrowing. However, they are still subject to Bank of England lending caps.
- Early Repayment Charges (ERCs): Be acutely aware of these. If you leave your current lender before your fixed or tracker deal ends, you will likely incur a penalty. These can be substantial (e.g., 1-5% of the outstanding loan). Your current mortgage statement will detail any applicable ERCs. Nationwide also charges ERCs if you make overpayments exceeding your allowance, or if you port only part of your mortgage.
- Porting vs. Remortgaging: If you're moving house, "porting" your existing Nationwide mortgage means taking your current deal to a new property. This is different from remortgaging. While convenient, it might not always be the best financial option if better rates are available elsewhere.
- Product Transfer vs. Remortgage: Remember the distinction. A product transfer is staying with Nationwide and switching deals, while a remortgage is moving your mortgage to a completely new lender (which could still be Nationwide if you're coming from another provider). Product transfers are generally simpler, with no legal work or full affordability checks.
Frequently Asked Questions (FAQs) about Remortgaging with Nationwide
Here are 10 common questions related to remortgaging with Nationwide, answered quickly:
How to calculate if remortgaging with Nationwide is worth it?
To assess the benefit, compare the potential savings on interest payments with Nationwide's new deal against any costs involved (ERCs from your old lender, new product fees, legal fees if you don't use Nationwide's free service, valuation fees if not free). Divide the total costs by your monthly savings to see your "break-even" point.
How to find the best Nationwide remortgage rates?
Check Nationwide's official website, use online mortgage comparison sites, and most effectively, consult an independent mortgage broker who has access to all available Nationwide products and can compare them against the wider market.
How to avoid early repayment charges when remortgaging Nationwide?
Plan to remortgage when your current mortgage deal is naturally ending. Most lenders allow you to secure a new rate up to 3-6 months before your existing deal expires, enabling a seamless transition without incurring ERCs.
QuickTip: Let each idea sink in before moving on.
How to apply for a Nationwide remortgage?
You can apply directly via Nationwide's website or app (for product transfers), by calling them for an appointment with a mortgage advisor, or by using a mortgage broker who can submit the application on your behalf.
How to prepare for a Nationwide remortgage appointment?
Gather all necessary documents beforehand, including proof of ID, address, income, and details of your current mortgage and any other debts. Have a clear idea of your financial goals for the remortgage.
How to remortgage Nationwide if self-employed?
You'll need to provide more detailed income verification, typically your last two years' SA302s and Tax Overviews from HMRC. Nationwide will assess your affordability based on your average income over this period.
How to remortgage with Nationwide if I want to borrow more?
If you want to borrow more, Nationwide will conduct a full affordability assessment, similar to a new mortgage application. You'll need to demonstrate you can afford the increased repayments. This may involve a more thorough review of your income and outgoings.
How to get a free valuation from Nationwide for remortgage?
Nationwide often offers free standard valuations for remortgages as an incentive to attract new business or retain existing customers. Check the specific product details for the deal you are interested in.
How to manage my Nationwide mortgage account online after remortgaging?
Once your remortgage is complete, you can manage your new Nationwide mortgage account through their Internet Bank or mobile banking app, using their "Mortgage Manager" tool to check balances, switch deals, and manage overpayments.
How to understand Nationwide's fees and charges for remortgaging?
Nationwide's product details and their "Tariff of Mortgage Charges" document (available on their website) will outline all potential fees, including product fees, early repayment charges, and any legal or valuation costs. Always ask for a clear breakdown before proceeding.
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