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Home ยป Should I remortgage with the same lender or switch?

Should I remortgage with the same lender or switch?

It allows you to ensure that you have the best mortgage to suit your specific needs. While you aren’t required to refinance, it’s worth looking into alternatives when you have the chance to look into the deals available. There may be a suitable mortgage option through a different lender or you might be able to change to a better offer with the lender you currently have.

Remortgaging could provide you with the best interest rate as well as more flexible terms on mortgages and also an opportunity to get more cash should you require. In the event of remortgaging your mortgage, there could be benefits to keeping one lender in addition to certain advantages of moving to a different one. It is important to consider all of the elements prior to making a choice.

You can remortgage with same lender but this is generally described as a “product transfer’. A product transfer isn’t usually considered to be a an entirely new loan (unless you choose to borrow a larger amount) however remortgaging with another lender is. The process could differ slightly.

The advantages of remortgaging the same lender include:

There are typically less costs to be paid since you will be able to eliminate the costs of legal and valuation. The lender that you have currently has will perform an internal index linked appraisal of your property in order to determine an approximate value for your home at this date. Based on the valuation, the lender may offer you a range of loans to select from. It could be an entirely new loan to value threshold due to market fluctuations or the equity that has been built up.

If you’re not buying the property from scratch Your current lender should to have your information on be on hand from the original application, therefore the procedure will be much easier. It’s a simple exchange for mortgage products.

If your circumstances have changed since you took the last mortgage, your existing relationship with the lender may benefit you when, for example you have experienced a change in your finances (perhaps you’ve switched your job , and have a lower income). The lender you currently have won’t require wages slips or any other documentation All they’ll check is that you’ve been on top of your mortgage payment and ensure that you’re not in arrears.

It’s usually faster, but it’s not something you should be done in a hurry. A straightforward product transfer can be completed in as little as 30 minutes, while refinancing with a new lender typically requires a minimum of 4 weeks because of the credit check as well as an affordability check. the appraisal of the property, and the legal paperwork.

The disadvantages of remortgaging the same lender include:

You may not find the most competitive rate. If you limit yourself to one lender can mean that you could have missed opportunities to get better deals on the mortgage market, from different lenders. We recommend looking around to find out what else is available which the mortgage broker will assist you with.

It is possible to receive biased advice. Your lender might advise you to remain with them since they do not want losing your company and leave you overwhelmed.

What about remortgaging using the same lender?

You’re not obliged to remain with the same lender for the duration the term of your loan. It’s not a single purchase. A lot of people swap several lenders over time to find the most favorable rates.

The benefits of remortgaging an alternative lender include:

You’ll have access to numerous deals. The deals offered by your current lender are just a small fraction of the total mortgage market. It’s not as simple as staying with the same one , but it could be more profitable financially should you locate the perfect deal. If the thought of shopping around is daunting and overwhelming, we’ll help you discover the best deal for your needs.

The process of switching lenders can come with some perk or two for example, cashback, free valuation , or no legal costs. A new lender may offer incentives to attract new customers, like promotional offers. The lender you currently have will probably not offer the same incentives to retain you.

An appraisal will also be conducted on the property you own. Although there’s usually an additional cost to this, a valuation could be beneficial to you as you could discover that you have a higher Loan Value (LTV) ratio than the last time you looked. The less of a percentage LTV is, the higher the mortgage rates you’ll receive.

The disadvantages of remortgaging an entirely new lender are:

There are costs involved. If you are switching mortgage lenders you might have for an exit fee from the lender you are currently with. It is necessary to hire a solicitor who specializes with conveyancing (property law) to draft the necessary legal documentation and will be charged costs for legal services. Most likely, you’ll need an updated valuation of your property , which you’ll typically have be able to cover. But there are mortgages that offer these services for free. In addition, if you’re locked into a fixed rate arrangement with your lender of choice and you decide to leave before the fixed period ends it could be necessary be charged an earlier repayment fee.

It’s more laborious, because you’ll have complete your application again and begin the process starting from the beginning. A new lender has complete all their normal affordability checks and evaluate your financial situation prior to accepting an offer.

Why should you use a mortgage broker or advisor?

Do you think about an remortgage deal with your current lender or are you better off finding the best deal from another lender?

Being independent mortgage brokers We have access the entire financial market , and we can get deals that consumers would normally not be able to see. This broadens your options in your search for the perfect mortgage. After reviewing your situation We will only recommend deals that we believe will work for you, thereby saving both time and energy , and perhaps avoiding confusion and an endless list of rejected applications.

We’re also here to provide as much advice from an independent source as you require. We’re completely impartial, and we’re focused on what’s best for you and not anyone else. Your mortgage will likely be among your largest household expenses, which is why it’s crucial to get it working for you. Contact our experts for expert advice and assistance on refinancing.