top of page
  • Writer's pictureDaniel Campbell

Should You Stick with Your Current Lender?

Remortgage or product transfer

When it comes to mortgages, deciding whether to stick with your current lender or switch to a new one is a crucial decision. At More Financial, we understand that this decision can significantly impact your financial well-being. Let's explore the factors to consider when making this choice.


Evaluate Your Current Mortgage

First, take a close look at your current mortgage. Are the interest rates competitive? Have your financial circumstances changed since you took out the mortgage? Sometimes, sticking with your current lender can be beneficial, especially if you have built a good relationship with them.


Consider the following aspects when evaluating your current mortgage:- Interest Rates: Compare the interest rates you are currently paying with the prevailing rates in the market. If your current rate is significantly higher, it might be worth exploring other options.

- Financial Circumstances: Assess if there have been any changes in your financial situation since you secured your mortgage. A better financial standing could qualify you for more favourable terms.


- Relationship with Lender: Consider the relationship you have built with your current lender. Good customer service and personalised support can add significant value.

For more details, check out our Mortgage Repayment Calculator


Market Comparison

Next, compare the market. Mortgage rates fluctuate, and new offers may provide better terms than your existing deal. Use comparison tools to check if you can get a better rate elsewhere. This could save you thousands over the life of your mortgage.

To effectively compare the market, you can:- Leverage Comparison Tools: Use online mortgage comparison tools to get an overview of the current rates and terms available from various lenders.- Consult with Mortgage Advisors: Seeking advice from mortgage advisors can provide personalised insights and help you find the best deals tailored to your needs.


Switching Costs

Switching lenders can incur costs such as early repayment charges or arrangement fees. Calculate these costs to see if switching is financially viable. Often, the savings from a lower interest rate can outweigh these costs, but it's essential to do the math.

Consider the following costs associated with switching:


- Early Repayment Charges: Some lenders may charge a fee if you repay your mortgage early or switch to a different lender before the end of your current deal.


- Arrangement Fees: New lenders might charge arrangement fees for setting up a new mortgage.


- Legal Fees: There could be legal fees involved in the process of switching your mortgage.

To get a clear picture of the costs, book a free consultation with us. Book a Free Mortgage Appointment


Benefits of Staying

Staying with your current lender may offer benefits like a smoother transition and potential loyalty discounts. Additionally, your current lender may match competitors' rates to retain your business. Always ask if they can offer you a better deal.


Benefits of staying with your current lender include:- Smoother Transition: Staying with your current lender can avoid the hassle of switching and provide continuity.- Loyalty Discounts: Some lenders offer discounts or benefits to long-term customers.- Negotiation Leverage: Use competing offers to negotiate better terms with your current lender.


Customer Service and Support

Consider the level of customer service and support you receive. A lender that provides excellent service and quick responses can be invaluable, especially when dealing with something as significant as a mortgage.


Key points to consider about customer service:- Responsiveness: How quickly does your lender respond to queries and requests?- Quality of Support: Is the support helpful and knowledgeable?- Accessibility: Are customer service channels easily accessible?

Learn more about our commitment to customer service on our About More Financial


Conclusion

Ultimately, whether you stick with your current lender or switch to a new one depends on your unique financial situation. Evaluate all factors carefully and seek professional advice if needed.


For more personalised advice, visit our website or book a free consultation with one of our experts at More Financial.


Get in touch with us today for tailored mortgage advice: Get Mortgage Advice


Comments


Join our mailing list

Thanks for subscribing!

bottom of page