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.
Maximise your chance of approval with specialist advice from an expert in Remortgaging with the Same Lender
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
Remortgaging with the Same Lender Calculator
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.