
10 ways to maximise your mortgage chances
Here are 10 top tips to help improve your likelihood of being accepted for a competitive mortgage deal
You can switch to a new mortgage deal without changing mortgage lenders. Find out more about remortgaging with your existing lender, so you can decide if it’s the right move for you
Remortgaging to a new deal with the same lender is known as a product transfer.
It’s often quicker than switching mortgage lenders, and it also usually involves fewer affordability checks.
But it’s unlikely to save you as much money as moving to a new deal with a rival mortgage lender.
You can remortgage to a new deal with the bank or building society that provides your existing mortgage. It can be a good way to save money if your original mortgage deal has come to an end and you are paying the lender’s standard variable rate (SVR) – which is usually higher than the rates payable on fixed or tracker mortgages.
If interest rates have fallen a lot since you took your mortgage out, it may be worth paying a charge to remortgage to a new deal with the same lender. In some cases, the lender may even offer to waive these charges if you choose one of its other deals. However, in most cases, you’ll be able to find a cheaper mortgage by switching to another lender.
Yes, it’s often quicker and easier to remortgage with the same lender than to switch to a mortgage offered by another bank or building society. As the lender has already approved a loan secured against your home, you shouldn’t need it formally valued again.
There’ll be less paperwork. And you may even be able to avoid going through another affordability check –meaning you can switch to a more attractive deal even if your job has been affected by the Covid-19 pandemic.
By opting for a product transfer with the same lender, you can also remortgage without using a solicitor. However, it’s worth remembering that some banks offer perks such as cashback to new customers that could be used to pay the legal fees if you switch to a different lender.
Remortgaging with the same lender can be done within a week if it’s a straightforward switch, and can often be arranged over the phone. Remortgaging to a new lender, meanwhile, generally takes between four and eight weeks. The main reasons it’s quicker to remortgage with the same bank or building society are:
Changing to a new deal with the same mortgage lender means you only get the choice of that bank or building society’s products, so you’re unlikely to be offered the best deal on the market. That’s why it’s always a good idea to shop around to see what’s available from rival lenders.
There are reasons you might want to stick with the same lender when you remortgage, though. These include:
Reasons to remortgage to a new lender, meanwhile, include:
You may have to pay an arrangement fee to switch to a new mortgage deal with your current lender. However, you shouldn’t have to pay valuation or legal fees. Many lenders will also waive the exit fee you would otherwise have to pay to remortgage to a new deal. If you face early repayment fees to quit your existing deal, it’s also worth asking whether you’ll still have to pay these if you stick with the same lender.
You won’t need a solicitor to change to a new mortgage deal with your existing lender. You will, however, usually need a solicitor or conveyancer to remortgage with another bank or building society.
You can find remortgage deals from lots of banks and building societies – including your existing lender – in just a few minutes with MoneySuperMarket. Answer six simple questions to see our best mortgages, or refine your search by answering further questions to see deals you’re likely to get.
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