Remortgage With Same Lender
As your fixed-rate mortgage comes to an end, it’s a good time to review your options. Remortgaging helps you avoid being moved onto your lender’s standard variable rate, lower your monthly payments, or even release extra funds if you’re looking to borrow more.
But, one of the most common decisions homeowners face at this stage is whether to stick with their current lender or switch to a new one. In this guide, we’ll walk you through all the details you need to know about remortgaging with the same lender, so you can decide whether it’s the right move for you. We’ll go over:
We will cover:
Can you remortgage with the same lender?
Yes, staying with your existing lender is an option. This is what’s known as a product transfer and lets you move onto a new mortgage deal without switching providers.
The range of deals available can vary from lender to lender. Some will offer existing customers access to the same deals as new borrowers, while others create exclusive products specifically for those already on their books.
Pricing can also differ in that you’ll find new-customer interest rates are more competitive, but some lenders offer preferential terms to reward customer loyalty, meaning sticking where you are could work in your favour.
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What are the pros and cons of remortgaging with the same lender?
Choosing to remortgage with the same lender is appealing if you want to keep things simple. This is because your lender already has much of your information on file, so the process is quicker and involves fewer formalities than switching to a new provider.
Why staying put makes sense
A product transfer requires minimal paperwork and rarely involves solicitors, implying you can move onto a new deal far more quickly than with a full remortgage
If your circumstances and mortgage terms are staying broadly the same, your lender won’t require a fresh credit check or detailed affordability assessment
Borrowers whose situation has changed (for example, those who are now self-employed or have experienced bad credit) will find it easier to secure a new deal with a lender they already have a relationship with
Remaining with the same lender helps you avoid valuation fees, legal costs and exit charges that apply when switching. That said, some lenders do offer incentives to cover these costs for new customers
In many cases, your lender won’t need to reassess the value of your property, which saves both time and money
Certain lenders reward existing customers with exclusive deals or preferential rates
Reasons to consider looking elsewhere
If your property has increased in value or you’ve paid down a large portion of your mortgage, your lower loan-to-value could equate to better rates, yet your current lender might not take this into account
You’ll only be able to choose from the products your lender offers, which may be less flexible or competitive than those available across the wider market
Another lender might offer lower rates or more suitable features that your current provider doesn’t match
If you plan to borrow more, alter your mortgage term, or switch to a different type of deal, a full affordability and credit assessment will still be required
Even when staying with the same lender, arrangement fees may be charged when moving onto a new product
Can I remortgage early with the same lender?
Yes, and sometimes you don’t even need to wait until your existing deal ends to move onto a new one. Many lenders allow customers to secure a new rate up to six months before their current deal expires, and will remove early repayment charges when doing so.
However, the rules on this do vary between lenders. Early repayment charges are costly and, if they apply, could therefore cancel out any savings you’d make by remortgaging early. It’s always worth checking the specific terms before making a decision.
Can I remortgage with the same lender and release equity?
It’s definitely possible to unlock some of the equity in your property when remortgaging with your existing lender. Homeowners choose this route to pay for home improvements, for debt consolidation, or to cover a large general expense.
But, remortgaging to release equity means increasing the size of your mortgage, as you’re borrowing more against your home’s value. As we mentioned, your lender will have to carry out further affordability and eligibility checks because of this, and your monthly repayments are likely to rise as a result.
Should I remortgage with the same lender?
Moving onto a new deal with your existing lender is quick and convenient, but it does limit you to that lender’s range of mortgage products. Whether this is the best option for you depends on your priorities, so it’s worth taking time to think about a few things before deciding.
Compare what’s on market, since other lenders could offer lower rates or features which better suit your needs, like the ability to overpay, offset savings, or port your mortgage in the future
Assess your future plans, due to how if you’re thinking about changing your mortgage term or borrowing additional funds, then you’ll have to check whether your current lender is alright with this
Factor in any changes to your circumstances, such as if your income has reduced, your employment status has changed, or your credit score has worsened, because securing a deal with a new lender will be more challenging
If you want to get a notion of your current eligibility before you apply, you can use our free credit check tool (£14.99 per month after the free 7-day trial). Using it will help you to see any possible mistakes or fraudulent activity on your profile, so that you can deal with such problems as soon as possible. The trial and subscription can be cancelled at any time.
How to remortgage with the same lender
If you’re considering staying with the same lender, taking professional advice ensures you’re not missing out on a better option elsewhere. In this context, a mortgage broker will review your lender’s deals against alternatives and factor in your unique position.
A broker will also handle the practical side of things by presenting your application clearly and gathering the required paperwork for you, making the process more straightforward and thereby less stressful.
At The Mortgage Genie, we help homeowners find mortgages which fit their individual needs, taking into account their distinct situation and budget, all while supporting them from start to finish.
If you’re after expert guidance on your remortgage options, then be sure to speak to our experienced team by calling 01915809890. And why not see how much you could save up to today by using our remortgage calculator?
The above blog has information contained within which was correct at the time of publication but is subject to change.
FAQs
How long does it take to remortgage with the same lender?
Moving onto a new deal with the same lender is much faster than switching providers. Specifically, a product transfer can be completed in a matter of days, and sometimes even within 24 hours.
Do you need a solicitor to remortgage with the same lender?
If you remortgage with your existing lender then a solicitor is not required, as you’re staying in the same property and with the same mortgage provider. Despite this, if you’re making changes to the mortgage itself, such as adding or removing a borrower, you will need a solicitor to handle the legal work.
Will there be a credit check if I remortgage with the same lender?
Switching to a new deal with your existing lender will not involve a full credit check, given that they already hold information about your property and payment history. Though, additional checks will follow if you want to either borrow more, make changes to your mortgage term, or if there have been missed/late payments on your part.
This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will based on your needs and circumstances.