Can you remortgage with the same lender?
If you’re reaching the end of your current fixed rate deal or want to change the terms of your mortgage (for example, extending the length of your mortgage term or borrow more), you might be considering staying with the same lender. Find out whether you can remortgage with the same lender in this guide.
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Can you remortgage with the same lender?
Yes, you can remortgage with the same lender. Technically, this process is called a mortgage product transfer or product switch as opposed to a remortgage. Remortgaging is when you not only change mortgage deals, but also mortgage lender as well.
When you change mortgage deals with the same lender, you normally don’t go through full affordability checks or credit checks, meaning that mortgage product transfers are often quicker than changing mortgage provider - as there are just a few clicks involved. This not only makes remortgaging with the same lender often quicker, it can also be a wise choice if your income or circumstances have changed since you originally took out your mortgage.
For example - your mortgage affordability might have changed during the time you’ve had your initial deal. Let’s say you’ve recently gone self-employed, had a reduction in working hours or a drop in income. If you go through full affordability with a new lender, you might find your borrowing is reduced.
Similarly, if you’ve had credit issues since you’ve owned your home - like missed payments on a credit card - you might be offered higher mortgage rates if you moved providers.
However, sticking with the same lender without doing your research could mean you miss out on a much better deal. There are thousands of mortgage products out there. Switching mortgage lenders could help you access better rates, and make your mortgage repayments more affordable.
Another thing to bear in mind is that if your property has increased in value since your last mortgage, your lender is unlikely to approve a product transfer taking that new figure into account. You’ll likely need to arrange a valuation with them before they’ll offer you a new deal.
Should I remortgage with the same lender?
Pros of remortgaging with your current lender
It's usually cheaper than changing your mortgage lender as you might not have to pay for a property valuation or solicitor
It can be quicker & easier as typically you don't go through full affordability checks
If your financial circumstances have changed since your last mortgage, your affordability might be reduced if you switched lenders
Cons of remortgaging with your current lender
You could miss out on a better deal with lower repayments if you changed providers, saving you money in the long-run
If your property has increased in value since your last mortgage, your new provider may give you a better loan-to-value (LTV) & more competitive mortgage rates
Other lenders may have mortgage products more suited to your situation with better features or more flexible terms
Can you remortgage early with the same lender?
Whether you’re remortgaging with the same lender or changing provider, you can normally remortgage early to switch deals. However, if you leave your current deal early, you might have to pay an Early Repayment Charge (ERC) which could make remortgaging early more expensive than switching to a new deal once your current one ends.
You can normally lock in a new rate up to 6 months before your current fixed rate deal ends, so when your current one is finished you can move straight onto your new rate instead of your lender’s SVR, which tends to be more expensive.
Can you be declined a product transfer mortgage?
Yes, it is possible to be declined from a mortgage product transfer. If your current lender is confident that your circumstances are unchanged, they are unlikely to conduct full affordability or credit checks. But if they do decide to conduct these checks, for example if you want to change your mortgage to borrow more, and you fail to pass the checks then your product transfer could be declined.
Unsure whether to switch?
It can be hard to know whether staying with the same mortgage provider is right for you or not. To get expert advice from our award-winning team, get in touch with us today.
