Should You Remortgage With The Same Lender Or Move To A New One
Is your current mortgage deal nearing its end? You might be wondering whether to remortgage with the same lender or switch to a new one to get a better deal and more importantly, save some money with a lower interest rate! As a mortgage expert I understand that this decision can have serious financial implications, so it’s always important to weigh your options carefully. In this blog, I will explore with you, the pros and cons of staying with your current lender versus moving to a new bank or building society for your next mortgage.
Why Consider Remortgaging?
Well…before I get into the real meat of the debate, I think it is important that we are all on the same page when it comes to remortgaging. Remortgaging simply means taking out a new mortgage to replace your existing one. As your current deal ends, you’re likely to be moved to your lender’s standard variable rate (SVR) automatically, which is often higher than fixed or tracker rates available in the market. A lot of SVR rates start at 7 or 8% and can be even higher.
By remortgaging and switching to a new lender with a rate 2% or even 3% lower, you will save money. Whether it’s with your current lender or a new one. Remortgaging is an essential part of being a mortgage customer, and it is something that you must have help and guidance on. That’s where we as mortgage advisors come in. A mortgage advisor will be there every step of the way to give you help and advice and make some informed recommendations on remortgage deals and lenders to save you money on your home loan.
Can You Remortgage With The Same Lender?
Yes, remortgaging with the same lender is known as a product transfer. In my opinion, this is often the most simple and quick route as it involves minimal paperwork and usually doesn’t require you to undergo a credit check. Because you already have your mortgage with your current lender, they know pretty much everything there is to know about your financial situation!
How Easy Is It To Remortgage With The Same Lender?
In short, it’s very easy. Remortgaging with the same lender generally doesn’t require much effort. The lender already has all your details, so it skips the lengthy credit and affordability checks. If you’re asking, is it easy to remortgage with the same lender?, the answer is yes—it’s one of the simplest ways to manage your mortgage renewal.
Hopefully, if you have been a good mortgage customer, your current lender will have much more trust in you than if you were a brand new customer. This often means that they do not need to re-check payslips or other proof of income. But is it the best option? Unfortunately this isn’t a simple black and white answer. That depends entirely on your situation. Let’s break down what I consider the advantages and disadvantages of remortgaging with the same lender.
Advantages of Remortgaging With The Same Lender
- Speed and Convenience: Remortgaging with the same lender is typically faster and easier than switching lenders. There’s no need to provide extensive documentation, undergo credit checks, or go through a property valuation. You avoid the lengthy process that comes with switching. So, if you’re asking, how long does it take to remortgage with the same lender?, the answer is usually just a few weeks, often less than a full switch to a new lender.
- Lower Costs: One of the biggest advantages of remortgaging with the same lender is the lower cost. There are no solicitor or legal fees, as you’re not moving to a new lender, and you can avoid exit fees that are often associated with switching providers. If you’re wondering, do I need a solicitor to remortgage with the same lender?, the answer is no—remortgaging with the same lender eliminates the need for one.
- No Credit Checks: If you’re concerned about your credit score and asking, do you need a credit check to remortgage with the same lender?, the good news is that you might not. In most cases, a product transfer doesn’t require a full credit check, making it a good option for borrowers with lower credit scores.
Disadvantages Of Remortgaging With The Same Lender
- Limited Product Range: While staying with your current lender is convenient, it may limit your access to better deals elsewhere. Even though staying put might be easier, the cost of remortgaging with the same lender over time could be higher if they don’t offer the most competitive rates. Exploring other lenders could open the door to more savings.
- Potentially Higher Interest Rates: Although remortgaging with the same lender might save you time and fees, it could end up costing you more in the long run. Can you remortgage early with the same lender? Yes, you can, but that doesn’t guarantee the best interest rates. Other lenders may offer more competitive deals that save you money over the lifetime of your mortgage.
- Lack of Incentives: When you switch to a new lender, you might be offered incentives like cashback or no-fee deals. If you remortgage with the same lender, these perks are often unavailable. New lenders may waive legal fees or offer better upfront incentives to entice you to switch, which could make a move worthwhile.
Costs And Fees
One of the primary reasons people choose to stay with their current lender is to avoid fees. Can you remortgage early with the same lender? Yes, you can, and in most cases, you won’t face the solicitor or exit fees associated with switching. However, you should still check if your lender charges any product transfer fees. Some lenders might apply these costs, but they’re typically lower than the fees involved in switching to a new lender.
Do You Need A Solicitor To Remortgage With The Same Lender?
As I have mentioned above in the pros and cons of remortgaging with the same lender, no, you don’t need a solicitor for a remortgage with the same lender. Since there’s no change of ownership or lender, the legal aspect is minimal, which simplifies the process even further.
Should You Switch To A New Lender?
Switching to a new lender can potentially save you more money. While remortgaging early with the same lender is easy, it might not always be the best financial decision. New lenders may offer better interest rates and incentives that could outweigh the short-term convenience of staying put.
Working with a whole of market mortgage broker is essential when looking to move to a new mortgage lender. At Oportfolio Mortgages, we are whole of market brokers which means that can access exclusive deals from every mortgage lender in the UK market and make the process a lot smoother. If you’re wondering “how long does it take to remortgage with the same lender versus switching?”, staying with your current lender is quicker, but switching could lead to long-term savings. That is why I would always recommend exploring your options thoroughly with a mortgage advisor when looking for a new mortgage deal.
Speak To A Remortgage Advisor
The decision to remortgage with the same lender or switch depends on your individual circumstances. Remortgaging with the same lender is quicker, less expensive, and requires less paperwork. However, the benefits of switching, such as better rates and incentives, may outweigh the convenience, particularly if you’re looking for long-term savings.
If you’re still unsure which route forward is best for you, you can speak to our advisors at Oportfolio Mortgages who can provide expert advice and help you navigate the process. Whether you decide to stay or switch, the key is to do your research and compare the options that suit your financial situation best. Call or email our team today to see how we can help.
