Can you remortgage with the same lender?

There are many benefits that go hand-in-hand with remortgaging. Whether your current mortgage deal is coming to an end, you have little left to pay, your home has increased or decreased in value, or you’re looking to overpay to end your term earlier than planned, remortgaging with the right product can make all the difference to your finances, especially considering the current state of things when every penny you make and spend counts.

Remortgaging at the right time can also help you pay off debt and consolidate your finances as The Times Money Mentor details:

“…you can borrow more money against your home to pay off your debts at a cheaper rate than you will be paying on your credit cards, for example. But remember that this will increase the size of your mortgage, so your lender will have to make sure you meet its affordability requirements, and it may be restricted in the loan-to-value it offers.”

With many lenders allowing you to bag a new mortgage product up to six months before your current mortgage deal ends, comparing the market and finding the mortgage that is right for you can start early. But can you save all the hassle and grab a new mortgage deal with the lender who is currently financing your home? In this blog post, we answer that very question so homeowners throughout East Anglia can remortgage with confidence.

Remortgage or product transfer?

In short, you can choose to remortgage your home with the same lender. The process is referred to as a ‘product transfer’. Instead of opting for a product transfer right away, however, we always recommend exploring the wider mortgage market before making your decision.

You don’t have to start your search for a new mortgage alone. Our experts are on hand to assist you with remortgaging, providing the independent, informed advice and support you need to tailor a remortgage solution that is right for you and your circumstances.

The benefits of staying with the same lender

There are of course some benefits to staying put and continuing your relationship with your current lender with a brand new mortgage deal.

Whilst the remortgage process can take weeks or even months, the product transfer procedure is much faster and easier. As your current lender has all your details, there is fewer checks involved in a product transfer. You will however still have to meet your lender’s specific eligibility and affordability criteria as well as pass associated checks with flying colours.

Choosing a new product with the same lender will also help you avoid the standard variable rate (SVR) deals that you are automatically moved to once your existing fixed rate, discount or tracker mortgage reaches the end of its term. Standard variable rate mortgages are particularly expensive, with the interest rates on this particular mortgage type much higher than other mortgage options.

The advantages of shopping around for a new deal

While sticking with your current lender is the easiest option, it is not always the best choice. No matter how big your current lender is, it is important to note that the mortgage products they offer only represent a small proportion of the wider mortgage market. Another lender may provide a better mortgage deal that works for you in the short and long term.

Advice provided by your current lender will not be impartial. They’ll have their own agenda regarding the mortgage product you choose to continue with and may not necessarily have your best interests at heart.

Remortgaging also offers an opportunity to have your home valued once again. The findings of your valuation could help you secure a mortgage deal with a better loan-to-value (LTV), meaning you could save even more!

Read more advice on grabbing a great deal when remortgaging or contact our team direct to discuss your options.

Image: Vitalii Vodolazskyi / Shutterstock.com