When deciding whether to remortgage, it is vital that you weigh up the options your current lender has to offer in terms of rates and features, so you can make an informed decision. You have two choices when it comes to refinancing your mortgage: remortgaging with a different lender or obtaining an updated deal with the same lender known as a 'product transfer'. While sticking with your existing lender may be more convenient in terms of paperwork, changes in the market could mean that you can get a better deal elsewhere. In this article, we'll look at the pros and cons of staying with your existing lender and explore some of the alternatives.

Deciding whether to remain with your current mortgage lender or shop around for a new mortgage deal can be overwhelming. However, comparing different mortgage providers and deals will ultimately help you find the most beneficial option available. Here at LTC we will compare mortgage deals and get the best interest rate for your financial circumstances.

Each lender will conduct a credit check so it is always best to have a good credit profile when looking for a new mortgage deal. This will determine your mortgage term and the mortgage rates available to you, this will also be a huge factor in the size of your mortgage payments.

Fixed rate deals are set for a certain period of time but it is important you don't wait until your deal expires before you get in contact with us, if you choose to remortgage this can take time and may mean you will go onto your current lender's standard variable rate. If you remortgage before your deal has expired, you need to be aware you may incur an early repayment charge.

Staying with existing lender

Choosing to stay with your existing mortgage provider is a much simpler process since you won't have to move lenders, resulting in fewer documents and costs associated with remortgaging however ultimately this may not be the best rate available based on your current circumstances and may cost you more.

Staying with your existing lender is usually a much simpler process due to requiring less paperwork, less legal work, no affordability checks (if the balance is the same) and usually no physical valuation. Your existing lender has a record of your financial behaviour, including payment history. Existing lenders can offer competitive rates to their existing customers.

However, it's important to shop around and compare different lenders as the market can change rapidly and your existing lender may not always be offering the best rates. Comparing different mortgage lenders is a good way to get the best deal when remortgaging. Remortgaging to a new lender can come with some additional benefits, these include free property valuation, cashback and free legal fees.

Remortgaging with your current lender is also better known as a product transfer as this remortgage process entails switching from your existing deal but staying with the same lender. If you need to raise money for things like home improvements then you will need to complete a further advance if you choose to stay with your existing lender, this usually requires additional checks and can be different interest rates.

Will remortgaging away from my existing lender benefit me?

If you decide switching lenders is best for you, it can be beneficial as you may be able to access better rates and features. By taking advantage of the current market and switching to a new deal, you may be able to reduce your monthly costs if you secure one of the most competitive remortgage deals available. Switching to a different lender means there may be additional fees involved such as an exit fee, valuation fees and legal fees. There will also be additional paperwork required. Taking the time to find the best deal for you can make a big difference in terms of saving money over the life of your loan.

Mortgage deals

If your current mortgage deal is due to expire it is beneficial for your to speak to a mortgage broker as they will compare deals within the mortgage market to find you the best remortgage deals, even if this means applying to an alternative lender. If your lender's standard variable rate is applied once your current deal ends then your payments may increase significantly.

Ultimately, whether it’s better to stay with your existing lender or switch will depend on your circumstances and the offers available in the market. Weighing up all of these factors will help you make an informed decision about remortgaging.

If you’re considering changing lenders, it’s important to seek professional advice from a mortgage advisor. They can provide tailored advice based on your individual needs, helping you make the best decision and get the most out of your loan.

Remortgaging can be a great way to save money, but it’s important to consider all factors before making a decision.  With the right advice and comparison shopping, you’ll be able to find the loan that best suits your circumstances.

How can a mortgage broker help me?

Overall, it's important to do your research and compare different lenders when considering remortgaging. Staying with your existing lender can be more convenient in terms of paperwork and fees, but changes in the market may mean that you can get a better deal elsewhere. Taking the time to evaluate your options will help you make an informed decision about remortgaging.

Professional advice from a mortgage broker can also provide valuable assistance in making the most of your loan. There will be legal paperwork needed whether you decide to switch lenders or not. While there are pros and cons to both staying with the same lender and switching, the best decision will depend on your individual circumstances.

Coming to a mortgage broker could save you money long term as all interest rates will be compared before a mortgage application is completed. With rising interest rates remortgaging is seen as a difficult time but other lenders may be able to offer you a better mortgage product than what you currently have.

Contact LTC Mortgages to discuss your options on 01516620188 or email us on [email protected]