Whether you’re looking for a better interest rate, a shorter mortgage term, or you want to free up cash to spend on home improvements, there are countless reasons why you might wish to remortgage your home.
Not only can remortgaging save you thousands of pounds over the course of your mortgage, it can completely transform your finances too.
Although the above benefits help to emphasise just how life-changing remortgaging can be, two million Britons are overpaying on their lender’s standard variable rate (SVR) and missing out on a valuable money-saving opportunity.
If you think remortgaging might be a clever move for you and your finances, you may find yourself wondering whether to remortgage with your current lender or switch to a new one completely.
Here are just a few things to think about before making your decision.
Stick - You’ll avoid some fees and charges
If you remortgage your home with a new lender, you’ll need to hire a conveyancer to carry out the legal work. You’ll also need to hire someone to conduct a valuation of the property, even if you’re staying in the exact same place. In addition, your mortgage lender may also charge you exit fees before they’ll let you leave them for another mortgage provider. However, you may not have to pay any legal fees when remortgaging if your new lender covers the costs themselves, so it’s worth checking.
If you stick with your current lender, you may avoid some of the above fees. In some cases, your lender will let you complete a product transfer, which means moving you onto a new deal.
No matter which option you choose, it’s wise to calculate the fees involved compared to the amount of money you’ll save by remortgaging. In some cases, the amount of money you’ll save by remortgaging with a different lender will far exceed the amount you’ll have to pay in fees.
Stick - You might be able to avoid credit checks
When sticking with your current lender, you may be able to avoid credit checks. This is because your lender will already have a good understanding of your ability to make repayments on time.
However, if your financial circumstances have changed, it’s likely that your lender will still want to compare your finances against their affordability criteria. So if you’ve changed jobs, become self-employed or you’re on maternity/paternity leave, your lender will take this into account.
Switch - You’ll have access to a greater choice of deals
When you remortgage your home through your current lender, your choice of mortgage deals will be limited. You’ll only be able to choose from your lender’s offering, meaning you may miss out on much better deals elsewhere. By comparing a greater choice of mortgage deals you can often save more money, both in the short term and long term.
Some lenders also offer specific deals for new customers, meaning that if you stick with your current provider, you could miss out on a rewarding opportunity.
Switch - You’ll have more flexibility
Not only can switching to a different provider allow you to find more affordable deals, it can also offer your greater flexibility too. This is because you’ll be able to scour more of the mortgage market in search of deals that offer you the benefits you need, whether that’s the freedom for payment holidays or the opportunity to make regular large overpayments in the event of a windfall.
If you like the sound of comparing a wide range of mortgage deals before selecting the one for you, get in touch with the team at TaylorMade today. We’ll use our extensive mortgage expertise to find the perfect loan for you and your financial situation.