So your existing fixed-rate mortgage deal is coming to an end and it’s time to get a remortgage underway. You may be wondering whether it is better to stay with your existing lender or will you get a better deal by remortgaging with a new lender?
When you come to remortgage, do you stay with the same lender? This is a question that most people will ask themselves when needing to find a better rate and deal. With over 14,000 mortgage rates and deals available, you will usually be able to get a better interest rate when changing mortgage lender.
The pros and the cons of staying with your current lender
In this guide, we will look at all of the options available to you when the time comes for you to remortgage. We will provide tips to help you achieve a successful and easy remortgage.
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Does it make sense to stay with your existing mortgage lender?
With over 14,000 mortgage deals available the chance of your existing bank or building society having the very best rate for you is quite slim! Your current lender will rely on you looking for an easy life and settling for the new interest rate that they are offering.
How easy is it to move to another lender?
Moving away from your current lender over to another lender is very easy. Don’t be put off as it is most definitely far easier than you would first think! The financial savings from moving lender can be quite considerable on a monthly outgoings basis. Then when you multiply these monthly savings over the term of the mortgage the saving can be quite mind-blowing!
How do I find who will offer me the best rates and deals?
You would think this might be a difficult task however it is actually quite straightforward. Get someone to do all the hard work for you. Find mortgage broker to search the whole mortgage market to find the very best rates and deals for you. Even better find a broker that doesn’t charge any fees for their service.
Will a mortgage broker charge for their services?
Although the majority of mortgage brokers do charge for their services there are many that do not charge for their services. These are known as fee-free mortgage brokers and may also be called free mortgage brokers. Great customer service with no fees and access to all the best rates and deals in the market are the two most important things to think about when choosing a broker.
Where do I find a fee-free mortgage broker?
The best way to find the best mortgage broker is by recommendation. Start by asking your family and friends who they have used any whether they would recommend their service. However, the next best alternative is to Google ‘fee-free mortgage broker’. You will then be shown a list of brokers and advisers that will help you find your new rate for you.
Paying too much for your mortgage?
Chances are you could save money with a better rate
Will I have to do loads of paperwork for the mortgage application?
The good news is that the broker will start the process by searching the whole mortgage market and all the mortgage lenders to find you the very best interest rate and deal. Once you give them the go-ahead they will be able to submit the mortgage application for you and see the whole mortgage application process right through to completion!
Will any of the new mortgage lenders charge me any fees?
The good news is that the different banks and building societies are always looking to entice new customers with g. This means that most will offer lots of incentives so it is very possible that you will be able to remortgage at no cost!
Do lenders offer any financial incentives?
Yes, there are a handful of lenders that as well as a even offer a cashback as an incentive when you remortgage with them. So as well as a great rate from the new lender you might also end up with some money in your back pocket from the remortgage.
Will I need to get a valuation carried out on my property?
Possibly, however, the good news is that most lenders do not charge a fee for a property valuation. Even better news is that most banks and building societies carry out desktop valuations. This means you will not be inconvenienced at all! The desktop property valuation is what it says on the tin, a valuation completed without an agent physically entering the property.
Do I need a solicitor to remortgage with the same lender?
You don’t need a conveyancing solicitor for every remortgage situation. For example, if you get an advance to borrow more on your existing mortgage deal, there are normally no charges for any associated legal work. The only charges you may occur are charges that arrive from the loan increasing.
If you decide not to go with a better rate but to stick with your current lender, this is called a product transfer. The product transfer requires no extra legal work, therefore it has no associated fee.
When is the best time to get my remortgage underway?
The ideal time to get your remortgage underway is 5 months before your existing fixed or tracker rate ends. The application process can be a little slow due to the fact that most banks and building societies offer legal services with no fees and property valuations with no fees.
Can I start a remortgage before my existing term ends?
Talk to your broker and they will be able to check the date that your fixed-rate finishes. It is really important that you do not complete your new mortgage before this date as you will occur early repayment charges.
Related frequently asked questions that you may also find useful
Would it be ok to fall onto the standard variable rate?
Each lender has its own standard variable rate (SVR), all are at a far higher rate and cos than available. You should never fall onto a SVR!
Should my mortgage broker be qualified?
Yes. all mortgage brokers registered in England are authorised and regulated by the financial conduct authority (FCA)
What is a product transfer?
A product transfer is just the technical name for the deal that your existing lender will offer you to stay with them.
Is it better to remortgage or get a loan?
Great question! This will really depend on a number of factors including how much you are wanting to borrow and the overall term. We recommend you get advice from a mortgage adviser and in the meantime read our guides here »
Will I need to prove my income if I stay with my existing lender?
Both your existing and new lender can carry out affordability checks and credit checks as well as needing to see proof of income. We highly recommend speaking to a broker who will advise what each new lender needs to see.
What to do next!
Give us a call at YesCanDo Money. We have been established for over 30 years and offer a no-fee whole of market mortgage broker service near Havant, Fareham and Portsmouth in Hampshire UK. We are a team of 15 advisers and mortgage managers that are at hand to help you. We look at the overall value of the rate, deals, and incentives.
We will be able to advise you whether staying with your existing provider or remortgaging to a different lender is best for you. What is even better is that we can do both of these for you and at no cost!
YesCanDo money is a trading name of Roberts Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority, authorisation number 527815.