Remortgaging with the same lender

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.

Can I remortgage and stay with the same 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.

Is it easier to remortgage with the same 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.

How long does it take to remortgage with the same 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:

• The lender has already valued your property and so will not need to conduct another formal valuation in most cases
• Most lenders will approve a product transfer without further proof of your income, as long as you’ve been keeping up with your repayments
• Some lenders also waive affordability and credit checks on trusted customers who request product transfers

Should I remortgage with the same lender?

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:

• You’re worried about being approved for a mortgage elsewhere, perhaps because you’re self-employed or your financial situation has changed
• You want to move on to a new deal as quickly as possible

Reasons to remortgage to a new lender, meanwhile, include:

• You can choose from hundreds of deals – rather than the handful your current mortgage lender offers. If you’re worried about being accepted, use the advanced search capabilities of our remortgage comparison tool to see the deals you’re more likely to be offered
• By getting your property valued again, you may be able to move into a lower loan-to-value (LTV) band, which will give you access to lower mortgage rates

How much does it cost to remortgage with the same lender?

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.

Compare remortgage deals

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.

Your home may be repossessed if you do not keep up repayments on your mortgage