The ultimate Nationwide remortgage guide 

As the biggest mortgage provider in the UK, Nationwide can offer competitive rates, a diverse range of products, and benefits like free legal services or cashback. This guide will explore all your options and explain the remortgaging process, helping you make an informed decision.

Reasons to remortgage to nationwide 

There are many reasons to consider a Nationwide remortgage, here are a few. 

• Diverse Product Range: Nationwide offers a wide variety of mortgage products to suit different needs, including fixed-rate, tracker, and offset mortgages. This diversity ensures that you can find a product that best matches your financial situation and goals.

• Good Rates, Often Market-Leading: Nationwide is known for its competitive interest rates, which are often among the best in the market. This can lead to significant savings over the term of your mortgage.

• Great Lender to Stay With: Nationwide provides attractive rates for existing customers. This loyalty is rewarded with competitive remortgaging options, potentially saving you the hassle and costs of switching lenders in the future.

• Free Legal Services or Cashback: To help offset the costs associated with remortgaging, Nationwide often offers free legal services or cashback deals. This can cover some or all of the legal and administrative costs, making the remortgaging process more affordable.

• Streamlined Process: Nationwide’s remortgaging process is efficient and straightforward, minimising delays and ensuring a smooth transition. Their customer service is also well-regarded, providing support throughout the process.

• Flexible Criteria and Lending in a Variety of Scenarios: Nationwide has flexible lending criteria, accommodating a wide range of borrowers, including those with non-standard income sources. They lend in various scenarios, such as remortgaging for home improvements, debt consolidation, or simply switching to a better deal.

How Does the Nationwide Remortgage Process Work?

• Find a Broker: Start by finding a mortgage broker who can help guide you through the process and compare options.

• Review Lender Options: With the help of your broker, review different lenders and their offers to find the best deal for your needs.

• Decide on Product, Borrowing Amount, Terms, etc.: Choose the specific mortgage product, determine the borrowing amount, and agree on the terms.

• Gather Documents: Collect all necessary documents, including proof of ID, income (payslips if employed, SA302s or accounts if self-employed), and details of your existing mortgage.

• Agreement in Principle (AIP): Obtain an Agreement in Principle from Nationwide to confirm how much you can borrow.

• Full Application:  Submit a full mortgage application to Nationwide with all required documents.

• Survey by Lender: Nationwide will conduct a survey of your property, usually free of charge, which can take about a week.

• Underwriting: The underwriting process typically takes 5-10 days and occurs simultaneously with the survey.

• Instruct Solicitors:  Instruct solicitors to handle the legal work. You can use your own solicitors or opt for Nationwide’s free legal service.

• Conveyancing: The conveyancing process usually takes 4-8 weeks to complete, during which the legal work required to switch lenders is carried out.

• Completion: Your old mortgage is repaid, the new mortgage with Nationwide is taken out, and any surplus funds are sent to you.

What documents are needed for nationwide remortgage?

The specific documents required can vary depending on the type of mortgage and your personal situation. Generally, you will need:

• Identification and Proof of Address: Valid ID (passport or driver’s licence) and proof of address (utility bills or bank statements).

• Income Verification for Employed Applicant – 3 months’ payslips & any payslips showing bonuses or commission

• Income Verification for Self-Employed, Sole Traders, or Partnerships- 2 years’ SA302s and tax overviews

• Income Verification for Limited Company Directors – 2 years’ accounts or an accountant’s certificate

• Other Standard Documents: 3 months’ bank statements & Existing mortgage statements

Depending on your specific situation, additional documents may be required.

When should I remortgage? 

There’s no specific right time to remortgage because it will depend on your own circumstances, here’s a few of the most common reasons and times to consider remortgaging. 

• Rate Expiry: When your current mortgage rate is nearing its expiration, it’s a good time to remortgage to avoid reverting to a higher standard variable rate. Aim to start the process within the last 6 months of your fixed rate’s expiry to reserve a new rate in advance and complete the remortgage without exit fees.

• Falling Interest Rates: If interest rates have fallen significantly, it may be worth exiting your existing deal early to take advantage of better rates, even if it means paying exit fees.

• Debt Consolidation: Remortgaging can be a good option to consolidate existing debts into your mortgage, potentially reducing your overall monthly payments and simplifying your finances.

• Home Improvements: If you need funds for home improvements, remortgaging can allow you to borrow additional money based on your property’s value.

• Transfer of Equity: Remortgaging can be necessary if you want to remove or add a partner via a transfer of equity, such as in cases of relationship changes or joint ownership adjustments.

• Buying Tranches of Shared Ownership:  If you are in a shared ownership scheme, remortgaging can enable you to buy additional tranches of your property, increasing your ownership percentage.

Do I need a valuation when remortgaging? 

Yes, a valuation is required when remortgaging to Nationwide. The borrowing amount is based on the loan-to-value (LTV) ratio at the time of the application rather than the property’s original purchase price. The valuation is typically free of charge and paid for by the lender. It may be conducted as a physical valuation, where an assessor visits the property, or it could be a desktop or automated valuation, depending on the circumstances and property details.

What Are the Costs of Remortgaging?

• Fees: If you leave your current mortgage deal early, you may incur exit fees. These are often early repayment charges (ERCs) specified in your current mortgage terms.

• Arrangement Fees: Some mortgage products come with arrangement fees, which typically range from £0 to £999 but can also be a percentage of the mortgage amount. These fees can usually be added to the mortgage.

• Solicitors’ Fees: While remortgaging, you’ll need to cover legal costs. Nationwide often offers free legal services or £500 cashback to help cover some or all of these costs.

• Broker Fees: If you use a broker, there may be additional fees. Some brokers do not charge directly and take a commission from the lender, while others may charge up to £500 or more for their services.

What are the alternatives to remortgaging? 

• Rate Switch with the Same Lender: You can switch to a new mortgage rate with your existing lender without going through the full remortgaging process. This can be a simpler and quicker option if your current lender offers competitive rates.

• Second Charge Mortgage: This option allows you to take out a second mortgage on your property without disturbing your existing mortgage. It can be useful if you want to avoid early repayment charges on your main mortgage but need to borrow additional funds.

• Standard Variable Rate (SVR): You can let your mortgage revert to your lender’s standard variable rate once your current deal ends. However, this is usually not the most cost-effective option, as SVRs are typically higher than fixed or tracker rates.

• Selling the Property: If remortgaging or fixing into a new deal doesn’t make financial sense, selling the property might be an alternative. This can free up equity and avoid locking into another mortgage deal.

Do nationwide offer debt consolidation remortgages? 

Yes, Nationwide offers debt consolidation remortgages. This can be a good option if you want to reduce your outgoings or clear up your finances. However, it’s important to consider the impact of spreading your debt over a longer term, as this can increase the total amount of interest paid.

Nationwide typically allows you to consolidate debt up to 80% of the property value. To be considered for a debt consolidation remortgage, you need to demonstrate that you are currently managing your existing debts effectively.

Do Nationwide Allow Remortgages for Home Improvements?

Yes, Nationwide allows remortgages for home improvements. They typically consider lending up to 85% of the property value, based on its valuation at the time of application rather than its potential value after the improvements are completed.

Do Nationwide Allow Remortgages to Buy Another Property

No, Nationwide does not allow remortgages for the purpose of buying another property. This is one of the few reasons for which they will not consider lending.

How Long Is a Nationwide Remortgage Offer Valid For?

A Nationwide remortgage offer is valid for 6 months from the date of the offer. This allows you to secure a rate for 6 months, protecting you from potential rate rises. Additionally, if rates go down during this period, you are not committed to the initial rate and can change to a better one before completion.

Considerations for Remortgaging

• Exit Fees with Current Lender: Check for any early repayment charges or exit fees with your current lender, as these can impact the cost-effectiveness of remortgaging.

• Explore Other Lenders: Aside from Nationwide, shop around and compare offers from other lenders to ensure you’re getting the best deal available.

• Product Transfer with Same Lender: Consider a product transfer with your current lender. This can be a simpler process and might offer competitive rates without the need for a full remortgage.

• Secure Rate Early: You can secure a rate up to 6 months in advance. This can protect you from potential rate increases and provide flexibility if rates decrease.

• Future Plans: Consider if you are thinking of selling the property or have any other significant life changes planned. Assess whether it’s the right time to remortgage and tie yourself into a new deal.

Remortgage Time scales 

• Book an Appointment: Schedule a meeting with a broker or mortgage advisor. This can take a few days to arrange.

• Research Options: Spend a few days exploring different mortgage options with your broker.

• Application Submission: Submit a full mortgage application along with all necessary documents. This can be done within a few days of deciding on a product.

• Valuation: Nationwide will carry out a valuation of your property, which usually occurs within 7-10 days of the application submission.

• Underwriting: The underwriting process typically takes 5-10 days and happens concurrently with the valuation.

• Instruct Solicitors: Once the mortgage offer is issued, instruct solicitors to handle the legal work. You can use Nationwide’s free legal service or hire independent solicitors.

• Conveyancing: The conveyancing process usually takes 4-8 weeks, during which the legal work required to switch lenders is completed.

• Completion: The entire process, from application to completion, generally takes around 8-12 weeks. This timeframe can vary depending on the complexity of the case and any potential delays with solicitors or paperwork.

Overall, you should ideally allow at least 2-3 months for the entire remortgaging process with Nationwide.

Should I Choose Nationwide Free Legals or Cashback?

Free Legals:

– Cost: No additional cost; legal services are provided free of charge.

– Solicitor Choice: Solicitors are chosen and instructed by Nationwide, so you have no say in who handles your case.

– Convenience: The process is streamlined since the solicitor is automatically instructed.

– Commitment: If you end up not remortgaging with Nationwide mid-process, you may need to switch solicitors if you choose another lender.

Cashback:

– Cost: You receive £500 cashback, which you can use towards legal fees.

– Solicitor Choice: You have the freedom to choose your own solicitor, giving you more control over who handles your case.

– Flexibility: If you decide not to remortgage with Nationwide and switch to another lender, you can continue using your chosen independent solicitor.

– Potential Savings: Depending on the cost of your chosen solicitor, you may end up paying more or less than the £500 cashback amount.

Considerations:

– Rate Volatility: If interest rates are falling and there’s a possibility you might switch lenders post-application, the flexibility of using an independent solicitor with cashback might be beneficial.

– Personal Preference: If you prefer having a say in who your solicitor is and potentially more personalised service, the cashback option allows for this.

– Cost Efficiency: If you prefer a no-hassle, cost-free option and are confident in completing the remortgage with Nationwide, the free legal option is straightforward and economical.

Ultimately, the choice between free legals and cashback depends on your priorities for convenience, control, and flexibility during the remortgaging process.

What do I do if I decline a nationwide mortgage?

• Understand the Reason: Review Nationwide’s feedback to identify why your application was declined.

• Improve Credit Score: Work on boosting your credit score by paying down debt and correcting any errors on your credit report.

• Adjust Financial Situation: Increase savings, reduce debt, and ensure income stability.

• Consult a Broker: Seek advice from a mortgage broker to explore alternative lenders and products.

• Reapply or Explore Alternatives: Consider reapplying with Nationwide after addressing the issues or apply to other lenders with different criteria.

• Review Documentation: Ensure all your documentation is accurate and complete.

• Professional Advice: If needed, consult a financial advisor for guidance on improving your financial health and preparing for a future application.

What to do if nationwide down values your property?

• Re-adjust Borrowing Amounts**: Modify your mortgage application based on the new property value and loan-to-value ratio.

• Consider a New Lender**: Apply with a different lender who may offer a more favourable valuation.

• Pick a New Product: Choose a different mortgage product with a rate that fits the new loan-to-value ratio.

• Appeal the Valuation: Gather evidence of higher valuations, such as recent sales of similar properties, and request a revaluation or appeal the decision with Nationwide.

How can Strive help? 

Strive Brokers can assist with a Nationwide remortgage by comparing products to ensure you get the best deal and providing tailored advice based on your financial situation. We help gather and prepare necessary documents, handle the submission of your application, and monitor its progress, addressing any issues that arise. We also coordinate with solicitors, secure favourable rates up to six months in advance, and offer continuous support throughout the remortgaging process.

FAQ’s 

– Do I Need a Valuation for Remortgage?

  Yes, a valuation is required to determine the current value of your property and the loan-to-value ratio for your remortgage. Nationwide typically covers the cost of this valuation.

– Do I Need Solicitors for Remortgage?

  Yes, solicitors are needed to handle the legal aspects of the remortgage process. Nationwide offers free legal services or a cashback option to cover these costs.

– Do I Need a Good Credit Score to Remortgage?

  A good credit score is important for securing favourable terms on your remortgage. It demonstrates your ability to manage debt responsibly and increases your chances of approval.

– How Soon Can I Remortgage with Nationwide?

  You can start the remortgage process with Nationwide up to six months before your current mortgage deal ends, allowing you to secure a new rate in advance.

Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.

For more information on mortgages for contractors, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.