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Should you remortgage with your current lender or look elsewhere?

Remortgaging can be one of the best ways to save a substantial amount of money and get better terms on your home loan. But it’s important to understand the benefits of getting a better deal and where you might find it.

There are only two options when it comes to remortgaging: getting a new deal from your current provider or finding a new one with a different lender. Depending upon your circumstances, both could see you land a new, lower interest rate.

You’ll be able to apply for a new mortgage when your introductory fixed, tracker or discount mortgage rate, comes to an end. So checking out all of the options should be the first thing you do when this happens. We’ve weighed up your choices…

Remortgaging with your current lender

Pros

Sticking with your current lender when remortgaging means you’ll avoid paying any fees they may charge you for switching lender.

You can also get a new mortgage much quicker with your current lender, as they have all of your details on file, so you won’t have to fill out loads of forms.

Cons

Find out if your current lender has any incentives to make you stay, it might be that other lenders have more attractive offers which suit you more – a bit like when mobile phone companies offer better deals to new customers than you get as a loyal, existing one.

Remortgaging with a new lender

Pros

As we mentioned above, even if your current provider charges fees, they’re often covered by the new provider, so you don’t have to fork out for unexpected costs.

But one of the biggest benefits if your property has risen in value, is the chance to get much lower rates if you’re in a lower loan-to-value band.

If this is the case, a new lender may offer a better introductory offer to get your business, but remember - have a chat with your existing lender first as they may match, or even better the offer!

In the future, you might even get to the point where you want to overpay your mortgage bill each month if you have a better-paying job. So you should see if a new lender allows this.

Cons

The only downside to switching mortgage provider is the paperwork you’ll have to fill out, but that won’t be an issue if you can find a broker who’ll do all of the hard work for you.

That’s where we can help - try our broker matching service and we’ll find a broker who can handle all of the complex details on your behalf, working with your existing and new mortgage provider to make the process effortless, while keeping you up to date at every step.

They can also assess the entire market after making an assessment of your finances and assets, to sniff out the possible rates around based on your circumstances.

Broker Matching Service

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