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Remortgaging with the same lender

Should you remortgage with the same lender?

Tim Heming
Written by  Tim Heming
5 min read
Updated: 16 Jun 2023

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.

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.

Even if you are locked into a deal, it may also be worth considering remortgaging if interest rates have fallen a lot since you took your mortgage out.

This would be the case if the savings you can make through reduced interest payments outweigh the charge you’ll face for ending your existing mortgage early.

In some cases, your lender may even offer to waive these charges if you choose one of its other mortgage deals. That said, it’s always worth shopping around to see if you can still find a cheaper overall deal elsewhere.

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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.

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?

Remortgaging with the same lender is usually cheaper than remortgaging your property with a new 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.

Can you remortgage with the same lender while releasing equity?

Yes, it is possible to remortgage with the same lender in the UK while releasing equity. 

When you release equity, you essentially borrow additional money against the value of your property, increasing your mortgage balance.

There are several reasons why a mortgage customer might choose to remortgage with the same lender while releasing equity.

  • Home improvement. If you want to renovate your kitchen or add an extension to your property, by remortgaging and releasing equity, you can access the funds needed to finance these projects without having to switch to a different lender.

  • Debt consolidation. If you have multiple debts with high interest rates, such as credit cards or personal loans, remortgaging and releasing equity can allow you to pay off those debts and consolidate them into a single, more manageable mortgage payment.

  • Funding life events. Releasing equity through remortgaging can be useful for funding events such as a child's education or starting a business. You can secure the necessary funds while still benefiting from the convenience of staying with your existing lender.

  • Funding retirement. Equity release schemes allow homeowners to access the equity in their property through a lump sum or regular income while still living in their home. The borrowed amount, plus interest, is repaid when the property is sold, typically when the individual dies or moves into long term care.

Do I need a solicitor to remortgage with the same lender?

Homeowners in the UK will often be able to remortgage with the same lender without needing to use a solicitor, but it can vary depending on the specific circumstances and the lender's requirements. 

In many cases, if you are simply switching to a new mortgage deal offered by your existing lender without making any significant changes to the terms or conditions, a solicitor may not be required.

However, if you are releasing equity, changing the property's ownership structure, or making any other substantial modifications to the mortgage agreement, the lender may insist a solicitor is involved.

Even if a solicitor is not mandatory, it could be advisable to seek legal advice during the remortgaging process. A solicitor can review the terms and conditions of the new mortgage offer, provide guidance on potential legal implications, and ensure that your interests are protected.

Is there anything I shouldn’t do before remortgaging?

There are a few things to avoid before remortgaging in the UK. These include:

  • Avoid making any significant financial changes or taking on new debts before remortgaging. Lenders assess your financial situation, so it's best to maintain stability

  • Refrain from missing or being late on mortgage payments, as it can negatively impact your credit score and lender's perception of your reliability

  • Don't apply for multiple credit cards or loans in advance of remortgaging. Each application can leave a mark on your credit report and affect your creditworthiness

  • Avoid closing existing credit accounts, as it can impact your credit utilisation ratio – the percentage of available credit you are using –  which is an important factor in mortgage applications

  • Do not hide or misrepresent any financial information or details to your lender, as it can lead to serious consequences and potential legal issues

  • Avoid making large withdrawals or transfers from your bank accounts without proper documentation, as it can raise concerns during the remortgage process

  • Resist from making significant changes to the property without informing your lender, as it may affect the property's value and eligibility for certain mortgage deals

  • Do not rush into a remortgage without thoroughly researching and comparing different lenders and deals, as it's essential to find the most suitable option for your financial needs

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.

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