Find out more about switching mortgage deals
If your mortgage deal is coming to its end, you want a better deal or you’re looking to release some equity, you might decide to switch mortgage provider. This is known as remortgaging.
If you are moving house and keeping your mortgage with your existing provider, this is called porting.
If you want to stay with your current provider you can call them and ask to speak to someone in their switching team. They will then give you information on their current mortgages. Alternatively, you can talk to a mortgage adviser, such as an expert from Mortgage Advice Bureau, as they can look at available mortgages lots of different lenders and recommend the right option for you at that time. So for example, Mortgage Advice Bureau can search from over 90 lenders and what could be thousands of mortgage deal options depending on your circumstances.
Not all advisers look at the whole of the mortgage market so if this is something you’re interested in for your search, make sure you find out during your initial consultation with them.
The cost of switching mortgage providers will depend on your individual circumstances. The cost of switching mortgage providers depends on your current deal. If you’ve come to the end of your fixed mortgage term there shouldn’t be any cost associated to switching providers. However, you might be charged an exit fee, called an Early Repayment Charge (ERC), on your existing deal if it hasn’t come to the end of its term. Annual mortgage statements or your initial mortgage application documents should tell you if there is a charge associated to switching or you can call and ask your current provider if there is a charge to move. This is also something a mortgage adviser will need to know if you are using one to help you with your new deal.
Sometimes, the cost can be a decreasing percentage as you move through your mortgage term.
If you do not have an early repayment charge, your lender may charge you a Deeds Release Fee which can be between £150 and £300 to cover the admin costs of closing down your mortgage.
You should however remember that if you move your mortgage to another provider then you may have to pay for advice and product fees.
You can switch your mortgage deal at any time; however there could be a cost associated to an early exit. You will need to check if there is an ERC associated to your mortgage and if you are using a mortgage adviser it’s helpful to have this information for them during your first conversation.
The length of time it takes to switch mortgages depends on your current provider and the new lender. You can typically expect the mortgage switching process to take between 4-6 weeks. This may be longer, depending on any complications surrounding your existing mortgage and market conditions. If you switch deals with your current provider, this time may be shorter.
Generally speaking, if you are switching your deal with your current provider they may only allow you to keep the current terms, number of borrowers on the mortgage and loan amount with your new deal. If you want to borrow more money, change the term or add on another borrower you may have to go through the whole underwriting process and a new application. Speaking to a mortgage adviser such as one of the experts at Mortgage Advice Bureau may help you navigate these options.
Mortgage Advice Bureau will search thousands of mortgages so you don't have to. Answer some mortgage related questions and an adviser will give you a call to discuss your options. Or you can visit your nearest building society branch.
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