It allows you to ensure that you have the best mortgage to suit your specific situation. Although you do not have to remortgage, it’s worth looking into options when an opportunity arises to look into the deals available. You may find a more suitable mortgage option through a different lender or you might be able to change to a better offer with the lender you currently have.
Remortgaging could provide you with an interest rate that is higher and more flexible terms for mortgages and also an opportunity to take out more loans in the event that you require. If you are remortgaging, there may be advantages to sticking with your current lender and certain advantages of moving to a different lender. 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’. A product transfer isn’t typically considered to be a an entirely new loan (unless you decide to borrow a larger amount) However, remortgaging another lender is. This means that the procedure could differ slightly.
The advantages of remortgaging the same lender is:
There are typically less charges to pay since you can avoid charges for legal fees and valuation fees. The lender that you have currently has will perform an internal index linked appraisal of your home to provide an approximate value for your house at the present date. Based on the updated valuation, the lender may offer you a range of options. It could be at the new loan-to-value threshold, as a result of changes in the market or the equity that has been built up.
If you’re not buying an entirely new home, when you remortgage with same lender they should have your information on have from your initial application, which means that the procedure will be much easier. It’s just a straightforward exchange for mortgage products.
If your financial situation has changed since you took out your last mortgage , an existing relationship with the lender may be beneficial 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 check is that you’ve maintained your mortgage payment and ensure that you’re not in arrears.
It’s usually faster, but it’s not something you should be done in a hurry. A straightforward product transfer can be completed in just 30 minutes, while refinancing with a new 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 is:
It is possible that you won’t receive the best rate available. If you limit yourself to one lender could mean you have missed opportunities to get better deals on the mortgage market, from different lenders. We 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 advise you to remain with them as they do not want losing your company and leave you overwhelmed.
Do you think about refinancing with an alternative lender?
There is no obligation to stay with the same lender for the term the term of your loan. It’s not a single purchase. A lot of people switch to several different lenders over time to get the most favorable rates.
The benefits of remortgaging an alternative lender include:
You’ll have access to numerous deals. The current deals from your lender represent only a tiny portion of the total mortgage market. It’s not as simple as staying with the same lender, but it could be more profitable financially 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 to suit your needs.
The process of switching lenders can come with one or two benefits like cashback, free valuation , or no legal costs. A new lender may make use of incentives to lure new customers, like special offers for introductory customers. Your current lender may not provide the same incentives to keep you.
An appraisal will also be conducted on your home. While there’s typically an expense associated with the process, it can be beneficial to you as you could notice that you now have a higher Loan Value (LTV) ratio than you did when you last examined. The less of a percentage LTV will be, the better mortgage rates you’ll receive.
The disadvantages of remortgaging an entirely new lender are:
There are fees to be paid. If you switch mortgage lenders, you could be required be able to make an payment to the lender you are currently with. You’ll need a lawyer that specializes on conveyancing (property law) to prepare the necessary legal documentation and will be charged legal costs. Most likely, you’ll need an updated valuation of your property , which you’ll usually need be able to cover. There are mortgage options which offer these services without cost. In addition, if you’re locked into a fixed rate arrangement with your lender of choice and you cancel your contract before the fixed term expires it could be necessary make a payment for an early-payment cost.
It’s also more time-consuming because you’ll have to fill out your application again and begin the process completely from the beginning. A new lender will need to conduct all of their normal affordability checks and evaluate your financial situation prior to offering a loan.
Why do you need a mortgage broker or advisor?
If you’re thinking about it, do you want to consider an remortgage deal with your current lender or are you better off seeking an alternative deal with another lender?
As mortgage brokers who are independent We have access to the entire financial market , and we can get deals that consumers might typically not have access to. This opens up your options in your search for the perfect mortgage. After reviewing your situation We will only recommend deals that we think will be beneficial for you, thereby saving both time and energy , and perhaps avoiding confusion and rejections on a number of applications.
We also provide as much advice from an independent source as you require. We’re totally impartial and we’re focused on what’s best for you and not anyone else. Your mortgage could be among your largest household expenses, which is why it’s essential to ensure it works for you. Contact our experts to get honest advice and advice regarding remortgaging.
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