Remortgaging With the Same Lender

What does remortgaging with the same lender mean?

Remortgaging with the same lender means moving from your current deal onto a new one with your existing bank or building society, without changing provider. In the mortgage world this is called a product transfer. You can read how a product transfer works in more detail.

A full remortgage, by contrast, means moving your mortgage to a different lender altogether. Both replace your old deal with a new one, and both are usually done to avoid slipping onto your lender’s standard variable rate (SVR), which tends to be a lot higher than a fixed or tracker rate. The difference comes down to one thing: whether you stay put or move. If you are new to the process, here is what remortgaging is and how it works.

The benefits of staying with your current lender

A product transfer is popular for good reason. Because your lender already knows you and your property, the process is stripped back. The main benefits are:

• It is quick. A straightforward product transfer can often be completed in a matter of days, sometimes with just a few clicks online or a single phone call.
• There are usually fewer checks. As long as you are keeping the loan the same and have kept up your repayments, many lenders will not run a full affordability check.
• You often avoid a valuation. Your lender already has your property on file, so a fresh valuation is frequently not needed.
• You usually will not need a solicitor. With no change of lender, there is typically no legal work involved.
• It can suit changed circumstances. If your income has dropped or you have become self-employed, staying put can be simpler than proving your affordability to a new lender. Here is more on remortgaging when you are self-employed.

The trade-offs to weigh up

Convenience is only half the picture. The main drawback is choice:

• You only see one lender’s deals. A product transfer limits you to your current lender’s range, so you could miss a lower rate elsewhere.
• You might not benefit from a lower LTV. If your home has risen in value or you have paid down a chunk of the balance, a new lender’s valuation could move you into a cheaper loan-to-value band. Staying put may not reflect that.
• Borrowing more brings extra checks. If you want to add to the loan, the lighter-touch process no longer applies (more on this below).

In short, a product transfer is often the easier option, but not always the cheapest.

Remortgaging with the same lender vs switching lender

Here is how the two compare at a glance:

How long does it take?

Speed is one of the biggest draws. A product transfer with your existing lender can often be arranged in a few days, and sometimes on the same day if it is a simple rate switch. Remortgaging to a new lender usually takes around four to eight weeks, because it involves a valuation, legal work, and a fresh application. Here is more on how long a remortgage takes.

When should you start?

Most lenders let you line up a new deal three to six months before your current one ends. Locking in early means you move straight onto your new rate when the old deal finishes, rather than rolling onto the SVR. If you leave a fixed deal early, watch out for early repayment charges (ERCs), which can outweigh the savings of switching sooner. It is worth checking when to remortgage and whether you should remortgage now.

Borrowing more at the same time

If you want to release equity or borrow extra, say for home improvements, that is still possible with your current lender, but it changes things. Borrowing more is called a further advance, and it usually triggers an affordability check, and sometimes a valuation. The extra amount is often charged at a different rate to your main loan. You can read about remortgaging for home improvements and releasing equity.

Should you still compare other lenders?

Yes. Even if a product transfer looks appealing, it is worth checking what the rest of the market offers before you sign, because your lender will not tell you if a rival can beat their rate. A broker can compare deals across the whole market, including your current lender’s, so you are comparing like for like. That is exactly what we do.

Find your most competitive option

To point you towards the most competitive option, it helps to know three things:

• Who your current lender is. Some lenders offer existing customers rates as good as, or better than, their new-customer deals, while others do not, so this shapes whether staying put is likely to be competitive.
• Exactly when your current fixed deal expires. This tells us how soon you can lock in a new rate, and whether starting now helps you avoid the SVR.
• Whether you want to borrow more, or keep the loan size the same. Keeping it the same usually means a faster, lighter-touch switch, while borrowing more brings a further advance and extra checks.

Whenever you are ready, our easy-to-use online tool lets you compare remortgage deals from lenders across the UK, so you can see whether staying with your current lender or switching works out cheaper. 

Once you have found a deal that suits you, our specialists are on hand to guide you through it, from the paperwork to dealing with the lender. We take the time to understand your circumstances and long-term plans, so the option you choose is the right one for you. If you would like a hand, get in touch. We are here to make remortgaging simple, clear, and stress-free.