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What happens when I leave my existing mortgage provider?

Leaving your existing mortgage provider can prove to be a very lucrative move. Read on and find out why! 

When you’re looking for the best mortgage deal you’re going to have thousands of mortgage providers telling you the deals that they offer are the best. And yet, after you’ve picked a deal, it doesn’t necessarily mean that you have to turn your back on all the other ones in the market. This is because remortgaging can be a great option for buyers. Let’s find out more on why.

What is remortgaging?

Basically, remortgaging is where you switch from your current mortgage deal to another one. But this doesn’t by any means require that you have to go with the same lender. Luckily for you, by remortgaging, you’ll be open to a whole market full of lenders and mortgage deals that could appeal to you. This means it’s time for you to think about your options seriously as it’s a decision that could save or cost you alot of money!

Is it worth remortgaging with a different lender?

Remortgaging with a different lender can definitely be an option to consider. But before you decide to formulate any sort of plan of action, you’re going to need to crunch the numbers first. What we mean by this is that while there may be some cheaper deals out there, when you consider exit fees etc. it could ultimately work out as more expensive.

Fees you could incur by switching lenders are an exit fees to release you from your current mortgage deal. You may not qualify for a fees free deal which could leave you paying for a new valuation of your property as well as solicitor fees to carry out the legal side of the switch. There'll likely be a lender fee of circa £1000 (usually added to your mortgage). Therefore, we recommend that you total all of these fees up against the amount you think you’ll be saving by going with a different mortgage provider. It can be an easy way of saving you money and hassle!

Reasons you may want to switch can include a number of money saving factors. For example, you may have found a deal with another mortgage provider that has a lower interest rate or one that may offer a better fixed rate to protect you from future interest rate rises. This can be a great way for you to raise funds to carry out any home improvements or to help you release equity from your home. Alternatively, it can help you raise money to settle any outstanding debts that you may have.

Why go with a new mortgage provider:

While the potential fees that may come with leaving your current mortgage provider might be off-putting, make sure you do your homework. Loads of mortgage lenders are happy to pay the solicitor and valuation fees to lure you in to a deal that they are offering. Therefore, it’s going to be imperative that you do your research as these sorts of offers can go a long way in mitigating the costs of changing mortgage provider!

If you feel like you’re overwhelmed by the information we’ve just given you then don’t be afraid to call or email us! At Mortgages Online we can provide you with all of the facts and figures you need by comparing a multitude of different mortgage providers and mortgage deals!

At Mortgages Online, we go past just finding you the right mortgage. We have loads of articles on everything to do with mortgages. From guides for first time buyers, bad credit mortgages and more – MO’s got you covered with all the relevant mortgage information you’ll need.

All of our service is free, so no credit cards required! See how MO can make your mortgage easy.

LauraWaller

Laura Waller

Laura Waller has been working in the mortgages industry since 2013, joining an independent brokerage in Essex. Laura has CeMAP 2 & 3 – Certificates in Mortgages Advice and Practice. Since then Laura oversees marketing for Mortgages Online, using her experience and expertise to write articles and blogs about mortgages and related topics.

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