Staying with your lender is fast and convenient, but it is always worth checking whether the wider market holds a better deal for your circumstances.
When your current deal is coming to an end, one of the first questions people ask is whether to simply stay put with their existing lender or move their mortgage elsewhere. Both routes have merit. Remortgaging with your current lender, sometimes called a product transfer, can be quick and convenient, but it will not always give you the most suitable deal. Here is what to weigh up.
Remortgaging with your existing lender can offer several advantages, including quicker processing times, potential access to exclusive products, and the convenience of keeping your financial products in one place.
Because your current lender already holds your customer information and has carried out the relevant property checks, the process can be much faster and the application approved more swiftly. Some lenders also offer deals to existing customers that are not available to new borrowers. In some cases, your lender may rely on an internal credit assessment, which can occasionally allow you to borrow more than you might from a new lender.
There are a few reasons you might prefer to move your mortgage elsewhere, even though staying put can be faster and simpler.
In short, while remortgaging with your existing lender can be convenient, it is always worth considering the alternatives to make sure you are getting the most suitable deal for your situation.
The headline rate is not the whole picture. Fees, the deal length and any early repayment charges all affect the real cost of a remortgage. A whole-of-market broker can compare the true cost across lenders, including your current one.
Switching products with the same lender can be completed quickly and easily. In many cases a product transfer can be arranged over the phone, with a new deal secured in a fraction of the time it takes to move to a different lender.
When you remortgage with the same lender there is usually no need for conveyancing. The existing documentation already reflects the lender correctly and there are no material changes to make, so a solicitor is generally not required.
A valuation is normally needed when you remortgage. Most mortgage valuations are now drive-by or online (desktop) valuations, which can be completed quickly and allow lenders to make fast decisions on remortgage applications.
However, for unusual builds or properties of non-standard construction, a full valuation may be required. In that case a lender may send a surveyor to inspect the property and verify the information you have provided.
Conveyancing is not always necessary when remortgaging, particularly if you stay with the same lender. There is no change of ownership and no change to the legal title, and the documentation already reflects the lender correctly, so a remortgage can often be completed without conveyancing.
If you switch to a new lender, conveyancing may be needed so that the new lender can confirm the legal title to your property. This is one of the reasons moving lenders can take a little longer than a product transfer.
It is sensible to discuss your remortgage plans with a mortgage broker before committing to anything. A broker can give you a clear view of the current market, explain the options available, and help you find the most suitable product for your needs and circumstances, whether that is a product transfer or a move to a new lender.
A broker can also handle the administrative side of a remortgage, from speaking to lenders to completing paperwork and managing the process on your behalf. That can save you time and effort and help your application run smoothly. For more on timing and the wider process, read our remortgage guide, and if your fixed rate is about to end, see our guide to exploring your options when your fixed-rate mortgage ends.
We help hundreds of people every year with their remortgages. Speak to our team and we will be happy to help you weigh up whether staying with your lender or moving is the right move for you.
Speak to an adviser who will compare your current lender's offer against the whole market and recommend the option that genuinely fits your circumstances.