Should I Remortgage With The Same Lender or Move?
To make sure you’re getting the cheapest product, it’s usually beneficial to remortgage every few years. Throughout the mortgage, you can save hundreds by doing this. However, is it preferable to do so with the same lender or choose a new mortgage company? Here’s how to balance the advantages and disadvantages of this important decision.
Why You Should Continue With Your Current Mortgage Lender:
#1 – Your Lender Believes In You:
Your approval for your current mortgage was likely several years ago, so a new potential lender cannot guarantee you the mortgage without going through the full remortgage process and they will need to run a credit and affordability check. It’s possible that a new mortgage with a new lender won’t be authorised for you if your financial situation has worsened (for example, due to getting laid off or making late payments or other credit issues). Another possibility is that your income has decreased since you obtained your current mortgage, making it difficult for you to meet the affordability requirements of a new prospective lender.
#2 – You Could Avoid Paying a Lot Of Expensive Fees:
As you aren’t changing lenders, there won’t often be an exit fee if you stick with the same lender. Because you are not buying a brand-new house, you could avoid paying additional legal or valuation expenses.
On the other hand, if you purchase and switch mortgage lenders, you will want the services of a lawyer with expertise in conveyancing (property law) to do the necessary legal works to move from your current lender to a new one. Additionally, you could have to pay for a valuation. You might even be required to pay an exit fee, often known as an Early Repayment Charge (ERC), which can vary greatly depending on the lender. However, some mortgage lenders provide unique packages that are intended to minimise the costs related to remortgage.
Also Read: Registered Mortgage vs. Equitable Mortgage: What’s the Difference?
#3 – You Will Save Time:
Once you realise the potential benefits of remortgaging, you should carry it out as soon as possible. It can be a relatively quick process if you stay with your existing lender. Still, switching to a new lender may take a while as you may need to go through a credit or affordability check and wait for various paperwork and a property valuation.
Reasons for Switching Lenders:
#1 – You Could Benefit From a Wider Variety Of Offers:
You can only access their specific mortgage deals if you remortgage with your existing lender. Still, if you are ready to look at the entire UK mortgage market, you will have access to a much wider range of possibilities. Discovering the most suitable product for you and your situation will be made easier with the help of a remortgage broker in Dagenham like Mountview Financial Solutions.
#2 – A Detailed Property Valuation Is Useful:
Only an online or desk valuation may be performed if you continue working with your current lender. If the worth of your property has dramatically grown, it’s possible that the full value hasn’t been acknowledged. It can indicate that the LTV, which measures how much of the property’s value your mortgage represents, has increased. Generally speaking, the lower your LTV % is, the cheaper rates and wider range of options you will be offered.
Also Read: Know the Importance & Explanations of Mortgage Interest Rates
#3 – The Repayment Terms Of Your New Mortgage May Be More Flexible:
You can select the product that offers more flexibility by switching to a new lender. For example, you can choose a mortgage that allows you to make extra payments to pay off the loan more quickly. If you anticipate regular income increases or bonuses, choosing this option may be beneficial. On the other hand, you might find more value in a mortgage that allows for payment holidays.
#4 – You May Be Able To:
You can get a loan with favourable conditions if you speak with a remortgage broker in London like Mountview Financial Solutions about the features and offers you are interested in. If you want to make home changes, you can take advantage of a deal that includes free legal assistance with your remortgage or a cash-back incentive.
Conclusion:
It will depend on various variables, such as how strong your credit rating and history are and whether switching lenders will result in an unreasonably high exit charge. You can see the options and get the best remortgage by working with a remortgage advisor in Purfleet like Mountview Financial Solutions. For more discussion about your need, contact us or call us at 02080950120!
