Thousands of homeowners in DA8 and DA18 are paying more than they need to.
Erith sits within the London Borough of Bexley, occupying the DA8 and DA18 postcodes along the south bank of the Thames. The area has been the subject of significant regeneration investment in recent years, including ongoing development of Erith town centre, improved infrastructure, and new residential developments that have brought new homeowners into the area alongside longer-standing residents.
Many of those homeowners, whether they purchased five years ago or fifteen, are likely paying more than they need to on their mortgage. If your fixed-rate deal has ended, or is coming to an end in the next six months, this guide explains what you should do and when, what a remortgage involves, and how a whole-of-market broker can make a significant difference to the outcome.
The first question to answer is whether your current mortgage deal has already expired. If your initial fixed or tracker rate period has ended and you have not remortgaged or taken a product transfer, you are almost certainly on your lender’s Standard Variable Rate (SVR).
The SVR is the interest rate a lender applies by default when no deal is in place. It is set at the lender’s discretion and tends to be substantially higher than the rates available on new fixed deals. Being on SVR is rarely in a borrower’s interest, and in most cases switching to a new deal will result in lower monthly payments, depending on individual circumstances.
To find out whether you are on SVR, check your most recent mortgage statement or log into your lender’s online portal. Your statement will show your current interest rate, and you can compare this against the rates available in the market. If your current rate is significantly higher than the rates being advertised for new deals, the SVR trap is likely the explanation.
Before contacting a mortgage broker, it helps to gather some basic information about your current mortgage. You will need: the name of your current lender, your current interest rate, your current monthly payment, your deal end date (if still in a fixed term), your outstanding mortgage balance, and an approximate estimate of your property’s current market value.
With this information, a broker can quickly identify which LTV band you fall into, whether you are in or out of a deal, and what the full market looks like for borrowers in your position. This initial assessment can often be done in a single phone call.
One of the most significant factors determining which mortgage rate you can access is your loan-to-value (LTV) ratio: the outstanding mortgage balance expressed as a percentage of your property’s current value. If you purchased your home several years ago, a combination of capital repayments and any house price growth may mean your equity has increased substantially since then.
Lenders price their deals in LTV tiers, typically 60%, 70%, 75%, 80%, 85%, 90% and 95%. As LTV falls, rates generally improve. A homeowner who was at 90% LTV when they first purchased and is now at 70% or below will have access to a meaningfully better range of rates than when they first took out their mortgage. Getting an up-to-date market valuation of your property, or even a reliable online estimate as a starting point, can therefore directly affect the deals available to you.
When you come to remortgage, your current lender will almost certainly write to you, often several months before your deal ends, with an offer of a new deal. This is called a product transfer: you stay with the same lender and switch to a new rate without going through a full new application. Product transfers are quick, involve minimal paperwork, and do not usually require a new valuation.
The downside is that your current lender is offering you a choice from their own range only. They have no incentive to show you competitor rates. A whole-of-market broker searches the entire lending market, including lenders who do not advertise on comparison sites or deal directly with members of the public, and compares these against your lender’s product transfer options. In some cases the most competitive option is indeed a product transfer; in others, switching lender saves a meaningful amount. The only way to know for certain is to compare both.
Remortgaging is not only used to secure a better rate. Many homeowners in Erith and across the borough choose to remortgage to release equity for other purposes, most commonly home improvements, but also debt consolidation or other significant expenditure.
If you are remortgaging to raise capital, you are increasing your mortgage balance (up to a maximum LTV that your lender will permit). This will affect both your monthly payments and the total interest you pay over the term, so it is important to think carefully about the implications. Using secured borrowing to consolidate unsecured debt (such as personal loans or credit cards) can reduce monthly outgoings, but it also means converting short-term debt into long-term debt secured against your home. The overall cost may be higher if the debt is spread over a much longer period. Always seek regulated advice before proceeding with capital raising remortgages.
Remortgaging is not cost-free, but the costs involved are often substantially outweighed by the savings from securing a better rate. Typical costs include: an arrangement or product fee charged by the new lender (these vary widely and some lenders charge no fee, a broker can compare fee-inclusive and fee-exclusive deals side by side), legal fees for the new lender’s solicitor (some lenders include free legal services as part of their remortgage package), and a property valuation (again, many lenders offer a free valuation for remortgage cases). Your broker’s fee will also apply; The Mortgage Consultancy typically charges £495 for arranging a mortgage.
A good broker will present the total cost of each option over the deal period, including all fees, so you can compare on a like-for-like basis rather than being misled by a low headline rate that carries a large arrangement fee.
Beyond LTV, several other factors influence which lenders will consider your application and what rates they will offer. Your credit history is a key consideration: missed payments, defaults, CCJs or other adverse credit events will affect the range of lenders willing to lend to you and the rates they offer. If your credit history has improved since you first took out your mortgage, for example, you have cleared debts or had a default drop off your file, you may find you can access better deals than before.
Your income also matters, particularly if your mortgage term is being extended or you are borrowing more. If your income has increased since you first purchased, this may expand your options. If it has decreased, due to a career change, a period of self-employment, or reduced hours, some lenders may be more suitable than others. A broker familiar with the criteria of the full lending market can navigate these scenarios effectively.
Individual circumstances vary: This article provides general information about remortgaging and is not personalised financial advice. The right course of action depends on your specific mortgage, financial situation, and goals. Please speak to a regulated mortgage adviser before making any decisions.
The Mortgage Consultancy advises homeowners across Erith, DA8, DA18, and the wider London Borough of Bexley. We are authorised and regulated by the Financial Conduct Authority and search the full mortgage market to find the most suitable deal for your circumstances.
Tell us about your current mortgage and we’ll search the full market to see whether you could save money by switching.
Whole-of-Market · No Upfront Fees · 25+ Years Experience