Switching mortgage provider

It really depends on your exact circumstances. There are a lot of factors that contribute to whether or not a remortgage is right for you, and timing is key to this. 

Switching to a new deal can save you money on interest, afford you more flexible terms, such as the ability to overpay, or even allow you to borrow more, but this won’t be true for everyone, so it’s important to fully understand your choices.

This guide will help you to decide whether it’s worth you switching to a new lender, but if you’re still unsure, speaking to a knowledgeable mortgage adviser can help you make the right decision for you.

A typical remortgage takes around four to eight weeks to complete, however, it can be slightly quicker or take longer than this, depending on the complexity of the case.

If you’re simply transferring your mortgage to a different deal with the same lender (a product transfer) it is usually much quicker.

You won’t usually be able to remortgage or do a product transfer within the first six months of taking out your mortgage, however, you have the choice to switch mortgages at any point after that. 

Remember that if you are currently in a fixed-rate deal or within the introductory rate period on a tracker or discount deal, you will likely have to pay ERCs (early repayment charges) to leave the deal before the term has ended, however.

When you switch mortgage providers, the new lender will want to do a full valuation of your property, similarly to the one that was carried out before you bought it. This is to determine its current market value, which may have risen or fallen since your purchase. If you opt for a product transfer with your existing lender, they won’t usually need to do a new valuation.

Yes it’s possible to change your terms in a number of ways when you remortgage, for example, you might want to switch from an interest-only to a repayment mortgage, from a fixed-rate to a tracker rate, or to a deal with more flexible terms, such as an offset mortgage. 

It’s even possible to change a residential mortgage to an investment rental property by remortgaging to a buy-to-let mortgage, if this suits your circumstances. So long as you meet the criteria of the new lender, you can generally choose the terms that suit your needs. 

Generally, yes you can, but it will depend on which scheme you used and your circumstances. Not all lenders offer remortgages to those applying through government home ownership schemes, and those that will are usually the same lenders that also offer mortgages to this type of applicant.

• Shared ownership mortgages can usually be remortgaged based on the value of your share of ownership.

• Right to Buy mortgages can also generally be remortgaged, however, this can be more complex. Depending on when you bought the property, you may not be able to make any changes for a defined period or may have to pay off your equity loan in order to do so.

There are no set rules about how often, or even whether you should switch your mortgage deal at all. The best time to do it is typically when your current deal comes to an end, or when it otherwise makes financial sense to do so.

It’s also worth bearing in mind that if you keep leaving deals early and paying ERCs in order to get a better interest rate, the fees paid over the lifetime of the mortgage will likely outweigh the benefits you get from changing mortgage deals in the first place. Seeking advice is the best way to make sure switching your mortgage is in your best interest.