The process of remortgaging lets you ensure you always have the best mortgage to suit your specific needs. While you aren’t required to refinance, it’s worthwhile to look into your options when an opportunity arises to find out what deals are available. You may find a more suitable mortgage option by contacting a different lender, or you might be able to change to a better offer with the lender you currently have.

Remortgaging may give you the best interest rate as well as more flexible terms on mortgages or the chance to get more cash should you require. In the event of remortgaging your mortgage, there could be benefits to keeping your current lender and the benefits of switching to a different one. It is crucial to evaluate all the variables prior to making a choice.

You can remortgage with your existing lender, but this is generally called a ‘product transfer’. The process of transferring a product is not typically considered to be a an entirely new loan (unless you decide to take out a loan) however remortgaging with an alternative lender would be. This means that the procedure could differ slightly.

The benefits of a remortgage with same lender include:

There are typically less costs to be paid since you can avoid charges for legal fees and valuation fees. The lender that you have currently has will perform an internal index-linked valuation of your property in order to determine an estimate of the value of your house at the present date. Based on the updated appraisal, the lender will offer you a range of options. It could be an entirely new loan to value threshold due to changes in the market or the equity that has been built up.

If you’re not buying an entirely new home the lender you currently have to have your information on be on hand from the original application, therefore the procedure should be a lot easier. It’s a simple exchange between mortgages.

If your financial situation has changed since you took the last mortgage, your existing relationship with your lender could benefit you in the event that, for instance the financial circumstances of your life have changed (perhaps you’ve changed your work and have a lower income). The lender you currently have won’t request wages slips or any other documentation the only thing they’ll do is make sure you’ve been on top of the mortgage payments and make sure that you’re not in arrears.

It’s generally quicker, however refinancing is not something you need to be done in a hurry. A straightforward product transfer can be completed in just 30 minutes, while the process of remortgaging with a different 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 requirements.

The drawbacks of remortgaging with the same lender include:

It is possible that you won’t receive the best rate available. If you limit yourself to one lender can mean that you could have missed the best deals on the mortgage market, from different lenders. We’d recommend looking around to find out what else is available and something the mortgage broker will assist you with.

It is possible to receive biased advice. The lender could urge you to stay with them since they do not want the loss of your work and leave you overwhelmed.

Do you think about refinancing with an alternative lender?

There is no obligation to stay to the same lender over the duration the term of your loan. It’s not a single purchase. A lot of people swap several lenders over time to get the most favorable rates.

The benefits of remortgaging an alternative lender include:

You’ll have access to many more deals. The deals offered by your current lender are just a small fraction of the total mortgage market. The process of swapping lenders may not be the same as staying with the same one , but it could be an investment in the long run when you can find the best deal. If you are worried about shopping around and overwhelming, we’ll help you determine the most suitable option 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, for example, special offers for introductory customers. Your current lender may not provide the same incentives to retain you.

An appraisal will also be conducted on your home. While there’s typically an expense associated with this, a valuation could be beneficial for you as you could notice that you now have a higher Loan Value (LTV) ratio than you did when you last examined. The smaller the percentage of LTV will be, the better mortgage rates you’ll receive.

The drawbacks of remortgaging an entirely new lender are:

There are costs involved. If you switch mortgage lenders, you could be required be able to make an payment to the lender you are currently with. It is necessary to hire a solicitor who specializes with conveyancing (property law) to draft the necessary legal documents to be filed, and this will cost costs for legal services. Most likely, you’ll need an updated valuation of your home, which you’ll usually need purchase. There are mortgage options 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 term expires You may be required make a payment for an early-payment fee.

It’s also more time-consuming since you’ll need to fill out your application again and begin the process completely from the beginning. A new lender will need complete all their normal affordability checks and examine your financial situation prior to offering a loan.

Why should you use a mortgage broker or advisor?

If you’re thinking about it, do you want to consider an remortgage deal with your current lender or would you be better off seeking the best deal from another lender?

Being independent mortgage brokers We have access the entirety of the market for financial services and are able to access deals that consumers might normally not be able to see. This broadens your options when you are looking for the ideal mortgage. After reviewing your situation and needs, we’ll only recommend deals that we believe will work for you, thereby saving both time and energy , and perhaps avoiding confusion and rejections on a number of applications.

We also give you as much impartial advice as you require. We’re completely impartial, and focus is on what’s best for you, and not other person. Your mortgage will likely be among the biggest home expenses, and it’s essential to ensure it works for you. Contact our experts for honest advice and advice regarding remortgaging.