Home & property · 6 min read
Remortgage or stay with your current lender? What to compare
When a mortgage deal is ending, the choice is not simply 'best rate versus current rate'. Staying with the existing lender and moving to a new lender can involve different checks, costs, flexibility and borrowing options.
Start with the objective
If you only want a new rate, the comparison may be different from a case involving additional borrowing, a term change, removing a borrower or changing repayment structure. Define the job before comparing routes.
Compare total cost, not only rate
Product fees, valuation or legal costs, incentives and the length of the deal can change the economics. A lower rate can still be more expensive over the relevant period if the fee structure is different.
Check early-repayment charges and timing
The date at which the existing deal ends and any early-repayment charge matter. Planning early gives you time to compare without accidentally creating a cost for switching too soon.
Remember that a new lender is a new assessment
Moving lender can involve a fresh affordability, credit and property assessment. That does not make it a bad route, but it means the customer should understand the current household position before assuming the cheapest advertised product is available.
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