Our Mortgage-Approval Guarantee - We're so confident in our service, we guarantee it - or £100 back* Read more Chevron
Arrow Arrow
Scroll to top

Can you change your mortgage provider?

Can you change your mortgage provider?
Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 28, 2022

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 thing you need to do is to look at the deal you have now, and see if you can find a better one with another lender.

Is it worth switching mortgage providers?

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

Before the introductory rates period ends is the time to start looking around and save some substantial 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 are able to 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*.

And because your repayments will be reduced from £501* per month, to £474*, this also gives you the option of paying your loan off earlier, by maintaining the original monthly repayment.

Is it difficult 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, but if there is a better deal 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. 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 take into consideration when remortgaging your home.

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

How long does it take to remortgage?

It can be a relatively quick process when compared with 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 with most lenders, you’ll incur an early repayment charge. Every mortgage provider is different, but it could be set at between 1 and 5% of the loan.

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

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Maximise your chances of approval, whatever your situation - Find your perfect mortgage broker

Don't miss out...

Sign up for the latest market news, new lender product information and helpful tips and advice from our experts!

Close icon