Remortgaging can give you a better interest rate, more flexible mortgage terms, and the chance to borrow more money if you need to.
As your initial period (the lower interest introductory offer you get when you start your mortgage) comes to an end, it’s always worth checking if you can hop to another introductory deal.
This new deal can still be with your current lender – that’s called a ‘product transfer.’ Or it can be with a new lender. You’re under zero obligation to stay with your existing lender.
You don’t even have to remortgage at all, but one thing’s for sure – it’s always worth checking the deals out there, just in case, to see what makes the most financial sense.
Why you might stay with your current lender
Skip the fees
When you stay with your lender, you usually don’t need to the fees for legal paperwork and a new valuation. Note though that many remortgage deals with other lenders will pick up the tab for some of these legal and survey fees.
To remortgage with a new lender, you need to start looking into available options 1–4 months before your rate expires. But transfer to a new mortgage with your current lender, and you could be remortgaged a little quicker – usually in a matter of days.
Why you might remortgage with a new lender
Access the best deals
Your current lender’s deals are only a tiny fraction of the overall remortgage market. As an existing customer, you might not even have access to their new customer deals either. There’s a whole world of deals out there – at least check! You might find not just lower rates, but more flexible terms out there.
Cashback and freebies
Lenders often throw freebies into their remortgage deals, like zero solicitor fees, cashback offers and free valuations. It can be hard to keep track of how these things affect the total, true costs you’ll be paying – an independent broker should be happy to take a look and tell you if it’s worth switching early or waiting.