Remortgage Advice - Should I remortgage with same lender or switch?
Wake up people, it’s 2018! Long gone are the days where remortgaging meant that you could only look for a new deal with the same lender. Now, you can remortgage with your lender or look for a whole new deal with a completely different one! But is it always the right option? Read on if you want some vital remortgage advice.
What are the pros in staying with the same lender?
Remortgage advice can be difficult to provide as the fees that mortgage lenders charge will often vary in price. Therefore, while there are plenty of pro’s in changing your mortgage lender, it may not always be the best option. Changing lender can often mean that you have to pay a variety of fees that may mean that you won’t see the benefit of switching for a long time.
One of the main positives of staying with the same lender is that you won’t have to pay any legal fees. If all you are doing is moving to a new rate or changing over to a fixed term deal, then this often earns status as a ‘product transfer’. What’s great for you is that this doesn’t require any further legal service!
Another fee you can avoid by staying with the same lender is the exit fee. This is what you must normally pay when you leave from one mortgage provider and go to another. While this only normally costs around £100 it can be an easy, cost-efficient way of saving money.
A great bonus of staying with your same lender is that you won’t have to go over any credit checks that you would have to do if you were going to another provider. I’m sure this will be a huge cause for celebration for those who had to fight tooth and nail to get their mortgage in the first place due to a poor credit score. If you fit this bill, then we recommend it might be a good idea to stay with the same lender.
What are the pros of remortgaging with another lender?
The main drawback of staying with your lender is clear. Your options will be limited to that lender and the deals that only they can offer. Are the deals your lender the best on the market & are they making those deals available to you. Other mortgage lenders are always competing for customers. So, by staying with the same lender you will be missing out on all of the eye-catching mortgage deals and rates that may be offered to you.
So, what you’re probably thinking now is that if you’re going to change lender then you may need to hire mortgage broker for extra remortgage advice? But remember, new mortgage lenders know this and can use it to their advantage. This means they can offer incentives to entice customers. This can include free property valuations, and free legal advice in attempt to sway those that were originally put off changing lender for these very reasons.
Mortgages.Online can help you remoertgage. Simply visit our Remortgage section.
Remember these are all important things to look out for. If you need any remortgage advice, make sure you contact our team of experts at Mortgages.Online! Not only can we help compare all of these options that different lenders can offer but ultimately, we’re here to make your life easier. So, don’t be afraid to drop us a message or check out our website. It’s impartial and most importantly it’s free to access! What are you waiting for?
We’ve got tonnes of advice and resources on everything from first time buyers’ mistakes, to what fixed rates are and even more mortgage advice!