Can You Change Your Mortgage Provider?

In a word, yes. Switching your mortgage provider is something you should consider doing at some point, as it can save you thousands of pounds in interest payments.

The process is called remortgaging, and the first step is to look at your current deal and see if you can find a better one with another lender.

Is it worth switching mortgage providers?

Many mortgage providers have ‘introductory’ rates designed to attract new customers. But your mortgage may be switched to a higher rate when the honeymoon period is over.

Before the introductory rates period ends, look around to see if you can save money.

For instance – if you have a £100,000 mortgage, at 3.5% interest, over 25 years, you’ll pay £150,138* over the loan period.

But if you can get a mortgage at 3%, just half a percent lower, you’ll pay £142,239* over the life of the loan—a saving of £7,899*.

Because your repayments will be reduced from £501* per month to £474*, you can also pay your loan off earlier by maintaining the original monthly repayment.

Is it challenging to switch mortgage providers?

The easiest way is to find out what your current lender is offering. If they have lower rates, you can ask to be switched to that rate. However, if a better deal is available elsewhere, switching to it isn’t particularly difficult or time-consuming, provided you’re eligible.

Remortgaging is usually much easier than getting a mortgage in the first place. You just find an attractive mortgage deal, put in your application, and your solicitor and the mortgage provider will take care of everything else.

How much does it cost to switch mortgage providers?

There will be some costs and fees to consider when remortgaging your home.

The various fees might include arrangement, booking, legal, and sometimes, valuation fees. If you’re still in the introductory rates period of a fixed-rate mortgage, there might also be early repayment charges to cover.

How long does it take to remortgage?

It can be relatively quick compared to getting your initial mortgage, usually four to six weeks on average.

This is providing your financial circumstances haven’t deteriorated and you have a standard construction home.

Can you remortgage if you have a fixed rate?

It is possible to remortgage if you have a fixed rate, but please be aware that most lenders charge an early repayment fee. Every mortgage provider is different, but it could be between 1 and 5% of the loan.

*These figures are for demonstrative purposes only. Please contact your mortgage provider for information about your specific circumstances.