Should You Remortgage With Your Existing Lender?

Remortgaging with the Same Lender

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

Looking to remortgage with your current lender? Our mortgage advisors are here to help you secure the right product for your needs, whatever your circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

Your monthly mortgage repayments can often take a huge leap once your fixed-rate mortgage expires. Remortgaging can save you significant amounts, but should you do it with your current mortgage provider?

We'll get down to the brass tacks of remortgaging with the same lender to help you decide whether it’s the right option for you. Count on our team of mortgage specialists to assist you at every stage of your remortgaging journey.

Can I Remortgage With the Same Lender?

A remortgage with the same lender is simply a product transfer. In other words, your lender is moving you over to a new mortgage product rather than putting in a new application. 

As your introductory period approaches the tail end, the most practical route is to switch to a new and better mortgage deal. Introductory deals usually last for 2–5 years from the time you take out a mortgage. 

If your current deal ends before your mortgage term is up, your lender may automatically place you on their Standard Variable Rate (SVR). From this point onward, you’re at the mercy of the lender because they can change the rates to reflect movements in the Bank of England rate, leading to potentially higher mortgage payments.

Repayments can fluctuate, along with shifting and usually higher rates. If you're like most people, you'll opt to revert to a fixed rate instead of staying on the SVR. 

That said, you can stick with your current mortgage provider for a product transfer. While staying onboard has its inherent benefits, remember that there's a whole sea of mortgage options out there to explore.

Common Reasons to Remortgage With Your Current Lender

Your options may be limited with the same lender, but there are some situations where you don't want to jump ship and go to a new mortgage lender. Here are a few: 

  • You're concerned about securing approval elsewhere because of changes in your financial situation.
  • You haven’t borrowed since the Mortgage Market Review of 2014 came into existence and made affordability tests stricter.
  • You're keen on quickly switching to a new deal.
  • You want to avoid an excessive early repayment charge or exit fees.
  • Your lender has competitive mortgage products.

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Advantages of a Remortgage With the Same Lender

These are the top reasons for remortgaging with your current lender:

Ease and Simplicity

Sticking with the same lender saves you from the hassle of switching to a new one. If your financial circumstances have suffered a setback since your last application, you’re better off with your current provider. Since they already have your info and payment history on file, the process is much simpler and quicker.

Higher Chance of Getting Approved

Your lender will be more willing to work with you, especially if you run into financial trouble down the road. As an old customer, it’s easier to get approved for a new product as the lender is familiar with your financial situation.

Less Upfront Cost

Your current lender typically frees you from legal fees and a new property valuation, resulting in short-term savings. In some cases, a fee-free mortgage may be a cheaper option and could save you money, even if the interest rate is higher. Additional charges, such as arrangement, booking, or valuation fees, can significantly increase the overall cost of the mortgage in many remortgage deals.

Credit Check Exemption

Since you're not applying with a new mortgage provider, you may not need to undergo a credit check. If your credit score has recently taken a hit, you will likely be better served by staying with your current provider.

Drawbacks of Remortgaging With the Same Lender

To help you decide if sticking with your existing lender is your best option, you may want to consider its downsides.

Limited Product Options

Your current lender may have a limited selection of mortgage products. You may want to change lenders if you’re switching to a different type of mortgage, such as a tracker or offset mortgage.

It's always worth shopping around and comparing mortgage deals from different lenders to ensure you don’t miss out on a potential money-saver. When the Bank Says No can assist you in finding the best mortgage options for you.

No Better Rates

Your current lender may not always have a better offer to beat the mortgage rate you're currently on. Do your homework and compare with other providers or else let our mortgage brokers do it for you.

If you can secure a better interest rate and lower monthly payments by switching lenders, you can bag more savings in the long haul.

Limited Negotiation

Some lenders may be less likely to negotiate the terms of the new mortgage product, as they may not see you as a new customer.

As such, you may not be able to get the same level of discount or flexibility as you would with a new lender.

Remortgaging with the Same Lender

Below, you’ll find out how fast and easy it is to remortgage with your current mortgage lender:

  • Talk with your lender about your remortgage options. The lender will assess your current financial situation to determine your eligibility for the new product.
  • Complete an online Agreement in Principle (AiP), which most lenders provide. This process doesn't require a full credit check nor bind you to a specific remortgage deal, but it can provide insight into your options. However, note that an AiP isn't a guarantee of approval for a remortgage.
  • Upon approval, your lender will issue a new mortgage offer, including the terms and conditions of the new mortgage product. 
  • Review the terms and conditions of the mortgage agreement before signing the offer.

Since your home is already in the books, you can avoid paying legal and valuation fees going down this route. Unless there’s a drastic change in the, the most they can do is perform a free electronic valuation or a drive-by valuation for a minimal charge.

Besides, you won’t have to pay any redemption fee when you remortgage your home with your current provider.

You won’t need a solicitor when remortgaging with the same lender unless you’re making a significant change to the terms of your mortgage. Your existing mortgage lender will already have the legal paperwork needed for your property on file, and there may not be any new legal issues to address.

Here are some ways to score the best remortgage deal with your current lender:

  • Compare rates and consider fixed and tracker deals to determine the best fit for your risk attitude.
  • Lower the amount you borrow relative to your property's value. Borrowing less money can help you secure a better deal with a lower interest rate.
  • Look beyond the interest rate and consider other potential costs associated with the mortgage, such as administrative charges and legal fees. Sometimes, a low-interest rate may be offset by high borrowing costs, and you end up paying more.
  • If you've found better deals with other mortgage lenders, you can use these as a bargaining chip to negotiate with your current lender. They may be willing to match or even beat the competition’s offer to keep your business.
  • If you're unsure about what product is best for you, consider seeking advice from a mortgage broker who can guide you through the tricky remortgaging procedure.

Remortgaging with the same lender is convenient and relatively hassle-free. In fact, some borrowers with fairly small mortgages would rather pay extra amounts on their repayments than go through the trouble of switching lenders.
You can also save on upfront costs, such as valuation and conveyancing fees. What’s more, your lender can offer you preferential rates to keep you from switching to a new lender.

Unless you're looking to take out a bigger mortgage than your previous one or release equity from your home, your lender may not perform additional checks on your property.

Some lenders, on the other hand, use their online house price index to value houses, which may be based on RICS calculations and recent sales. Of course, this doesn’t factor in the improvements and extensions you’ve done on the property.

However, if you think your house has a better loan to value (LTV), i.e. your home has gone up in value, you’ll want a full property valuation. Just imagine all the cheaper deals and lower interest rates you can get with an improved LTV. In that case, it won’t hurt to ask your lender to revalue your house.

Not only is remortgaging with your existing lender easier than changing mortgage lenders, but the product transfer only takes about several minutes to a few days to complete.

Since your current lender already has your financial information and mortgage details, it’s quicker than moving lenders. With a new lender, you usually have to wait 4–8 weeks before the remortgage gets finalised.

Since your home is already in the books, you can avoid paying legal and valuation fees going down this route. Unless there’s a drastic change in the, the most they can do is perform a free electronic valuation or a drive-by valuation for a minimal charge.
Besides, you won’t have to pay any redemption fee when you remortgage your home with your current provider.

Remortgaging with the same lender is convenient and relatively hassle-free. In fact, some borrowers with fairly small mortgages would rather pay extra amounts on their repayments than go through the trouble of switching lenders.

You can also save on upfront costs, such as valuation and conveyancing fees. What’s more, your lender can offer you preferential rates to keep you from switching to a new lender.

A few months before your introductory period ends, your lender will probably get in touch to entice you with their retention deals. You’ll likely get a good enough offer to convince you to stay.

However, unless you shop around the open market and compare your options, you won't know for sure if you're getting the best deal available to you. That said, many lenders provide competitive remortgage deals that no new lenders can beat.

Some people may wonder if they can remortgage early with the same lender, and if there are any financial implications of doing so. It is often possible to end a fixed rate mortgage early and some, but not all, lenders may waive early repayment charges (ERC) if you opt to stay with them before your existing mortgage deal has ended. However, it may limit your options with the mortgage products your current lender is willing to offer.

If you do face an ERC then you may find that it simply doesn't make financial sense to end your current mortgage deal early. We can help you decide whether remortgaging early is the right option for you.

Typically, a product transfer doesn’t involve a credit check. If you have a good payment history, your lender will be more than happy to continue doing business with you.

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Use a mortgage broker to find you the best remortgage option

Remortgaging with the same lender can offer a range of benefits, including cost savings, access to better rates, and more suitable mortgage options. However, whether you’ll want to stick with your lender or switch lenders altogether will depend on your needs and circumstances.
If you're looking to remortgage your home, you can rely on our mortgage specialists to do the legwork for you.
So, let us scour the whole market for the juiciest deals before you lock into a new agreement with your current lender.

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We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

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